2019 Form 1040 Schedule C Download: A Step-by-Step Guide

As a small business owner, filing taxes can be overwhelming, especially if you're new to entrepreneurship. One crucial document that you'll need to file is the Schedule C form, which reports your business income and expenses. In this article, we'll walk you through the key sections of Schedule C and provide tips on what to include.

Section A: Business Description and Code

In Box A, enter a brief one-line description about the type of business you're doing, along with the relevant code found in the IRS instructions. This is an important section, as it helps the IRS categorize your business for tax purposes.

Section B: Accounting Method

Record your accounting method in this section. Most small business owners use cash accounting, but if you're unsure which method to use, consult our guide on the differences between cash and accrual accounting.

Section C: Inventory Count and Valuation (if applicable)

If you sell products, be sure to record an inventory count and valuation in this section.

Section D: Receipts and Statements

Gather receipts or statements for any business purchases, including smaller items like food expenses and big-ticket items like equipment, cars, or buildings. These documents will help you accurately report your business income and expenses.

Section E: Employer Identification Number (EIN)

If you have an EIN, be sure to include it in this section.

Additional Tips

* If you paid subcontractors or individuals $600 or more for work in your business, you'll need to file Form 1099.

* Check the box in Section H if this is your first year in business. If you're unsure, consult an expert.

* 'Material participation' generally means that you worked in your business. If you're not sure which accounting method to use, check out our guide on the differences between cash and accrual accounting.

Downloading Schedule C

To download an updated version of Schedule C, select the corresponding Knowledge Base article and follow the instructions provided. It's recommended that you install all updates that apply to you to keep your computer up-to-date.

By following these steps and tips, you'll be well on your way to completing your Schedule C form accurately and efficiently. Remember to keep detailed records of your business income and expenses throughout the year to make tax season easier.

2019 form 1040 schedule c download