Page 188 - Individual Forms & Instructions Guide

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Department of the Treasury Schema: Leadpct: 100% Pt. size: 10 (Init. & Date) _______
Internal Revenue Service
2022 Instructions for Schedule C

Profit or Loss Use Schedule C (Form 1040) to report income or (loss) from a business you operated
or a profession you practiced as a sole proprietor. An activity qualifies as a business if
From Business your primary purpose for engaging in the activity is for income or profit and you are
involved in the activity with continuity and regularity. For example, a sporadic activi-
ty, a not-for-profit activity, or a hobby does not qualify as a business. To report in-
come from a nonbusiness activity, see the instructions for Schedule 1 (Form 1040),
line 8j.
Also, use Schedule C to report (a) wages and expenses you had as a statutory em-
ployee; (b) income and deductions of certain qualified joint ventures; and (c) certain
amounts shown on a Form 1099, such as Form 1099-MISC, Form 1099-NEC, and
Form 1099-K. See the instructions on your Form 1099 for more information about
what to report on Schedule C.
You may be subject to state and local taxes and other requirements such as business
licenses and fees. Check with your state and local governments for more information.

Section references are to the Internal services, or goods. Go to IRS.gov/Gig to
Revenue Code unless otherwise noted. get more information about the tax con- General
Future Developments sequences of participating in the gig Instructions
economy.
For the latest information about devel- Business meal expense. For a limited Other Schedules and Forms
opments related to Schedule C and its time, business meals are 100% deducti- You May Have To File
instructions, such as legislation enacted ble under certain conditions. See • Schedule A (Form 1040) to deduct
after they were published, go to IRS.gov/ Line 24b, later, for more information. interest, taxes, and casualty losses not
ScheduleC. Excess business loss limitation. If you related to your business.
• Schedule E (Form 1040) to report
What's New report a loss on line 31 of your Sched- rental real estate and royalty income or
ule C (Form 1040), you may be subject
to a business loss limitation. The disal- (loss) that is not subject to
Standard mileage rate. The business lowed loss resulting from the limitation
standard mileage rate from January 1, self-employment tax.
2022, to June 30, 2022, is 58.5 cents per will not be reflected on line 31 of your • Schedule F (Form 1040) to report
Schedule C. Instead, use Form 461 to
mile. The business standard mileage rate profit or (loss) from farming.
from July 1, 2022, to December 31, determine the amount of your excess • Schedule J (Form 1040) to figure
business loss, which will be included as
2022, is 62.5 cents per mile. income on Schedule 1 (Form 1040), your tax by averaging your farming or
fishing income over the previous 3
New Form 7205, Energy Efficient line 8p. Any disallowed loss resulting years. Doing so may reduce your tax.
Commercial Buildings Deduction. from this limitation will be treated as a
• Schedule SE (Form 1040) to pay
This new form and its separate instruc- net operating loss that must be carried self-employment tax on income from
tions are used to claim the IRC 179D de- forward and deducted in a subsequent any trade or business.
duction for qualifying energy efficient year. • Form 461 to report an excess
commercial building expenses. See business loss.
Form 7205. See Form 461 and its instructions for
details on the excess business loss limi- • Form 3800 to claim any of the
Reminders tation. general business credits.
Small Business and Self-Employed • Form 4562 to claim depreciation
Self-employed tax payments deferred (SB/SE) Tax Center. Do you need help and amortization on assets placed in
in 2020. If you elected to defer self-em- with a tax issue or preparing your return, service in 2022, to claim amortization
ployed tax payments from 2020, see or do you need a free publication or that began in 2022, to make an election
How self-employed individuals and form? SB/SE serves taxpayers who file under section 179 to expense certain
household employers repay deferred Form 1040, 1040-SR, Schedules C, E, F, property, or to report information on
Social Security tax. or Form 2106, as well as small business listed property.
• Form 4684 to report a casualty or
Gig Economy Tax Center. The gig (or taxpayers with assets under $10 million. theft gain or (loss) involving property
on-demand, sharing, or access) economy For additional information, go to the used in your trade or business or
refers to an activity where people earn Small Business and Self-Employed Tax income-producing property.
income providing on-demand work, Center at IRS.gov/SmallBiz.
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