- 1). Complete part I by filling in your principal business or profession, business name and business address.
- 2). Report your total self-employment income on line 1 of part II of Schedule C-EZ.
- 3). Report your total expenses on line 2 of part II of Schedule C-EZ. Expenses include costs you incurred from running your business such as advertising, equipment and travel.
- 4). Subtract your expenses from your self-employment income to determine your net profit and report the total on line 3 of part II of Schedule C-EZ. For example, if you had $40,000 in income and $3,000 in expenses, you net profit would be $37,000.
- 5). Report your net income on line 2 of your Schedule SE to calculate your self-employment taxes and on line 12 of your form 1040 tax return to calculate your income taxes.
- 6). Complete part III of Schedule C-EZ if your expenses include vehicle expenses. You will need to submit the date you started using your vehicle for business, how many miles you drive the vehicle for business, whether you could use your vehicle for personal use and whether you have evidence to support your deduction.
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