Do I need to put business total income or just personal income on my schedule C?

[lng22392]

When filing, its only asking for my personal income, but its also asking for ALL of my business expenses. It seems like it wouldn't add up correctly.

[DouglasB12]

I'm pretty sure you put in your gross business income. The beginning part of the interview breaks it down into all the different categories like 1099's and so on. That is where you put all the income your business has received.

[RaifH]

You only want to put your business income on your Schedule C. This would include any amounts reported to you on 1099-NEC as well as any other business income that you may not have received any paperwork for at the end of the year. 1099-MISC or 1099-K income may also be reported as business income depending on how you earned the income. You also put all your business expenses on your Schedule C, but you cannot include any personal expenses.

Your other sources of income will be reported on other areas of your tax return. Non-business expenses, with some exceptions, are generally not deductible anywhere on your return.

To enter your business income:

1. Type Schedule C in the Search box
2. Select the Jump to link
3. Answer Yes to Did you have any self-employment income or expenses? and answer the questions until you get to Let's enter the income for your work.
4. Enter all forms of income you have received for this work.

[lng22392]

I followed those steps but the issue I'm having is that I have to put it under my name or my husband's name and what individually we made at our business. It asks for what each of us personally made, not as a whole for our business. It's confusing because I'm also having to split those business expenses between us even though it's the same company but that's what it says to do. Am I just putting our business information in incorrectly then?

[LoganathanB]

You will have to split the income and expenses and enter them as separate businesses.

You will have to create two Schedule Cs and enter each one's share of income expenses separately. This is to your advantage for social security and certain deductions and credits.

Click on the link for more information

Self Employed

[lng22392]

Great, I did all of that, but it's still unclear where I put the overall business expenses. I follow the on-screen instructions and it never asks for gross income. Can someone point me to the box that it would need to be in so I can manually do it? 

[VolvoGirl]

You might need to file a separate Partnership return  instead of filling out Schedule C.  Schedule C is for individual self employment, not for a couple.  You need to fill out 2 separate schedule Cs, one for each of you and split the income and expenses.    You might want to go to an Accountant to do it the first year and set up your schedule Cs right or do a Partnership return.

How to enter income from Self Employment
https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

Where to enter business expenses
https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-my-self-employment-busine...

Here is some IRS reading material……
IRS information on Self Employment
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

1040 Schedule C Instructions
https://www.irs.gov/pub/irs-pdf/i1040sc.pdf

Publication 535 Business Expenses
https://www.irs.gov/pub/irs-pdf/p535.pdf

[Vanessa A]

To enter your self-employment income click the following:

• Federal
• Income and Expenses
• Show More next to Self-Employment
• Start or Revisit next to Self-Employment
• Yes, to you have any self-employment income or expenses
• Enter the type of self-employment work you do
• Click through a few more screens and you will get to a screen that says "Your XX info"
• Click Looks good
• Then you will come to a screen that says Let's enter the income for your business.  It will give you the option of 1099-NEC or Other self-employed income including the 1099K , cash and checks.  Select the one that applies to you and hit continue
• If you do not select one, it will not let you enter your income
• Enter your self-employment income on the next screen

[lng22392]

I actually just went to an accountant last week and they told me I didn't need to do that based on our individual business. So I've already figured out that the Schedule C is what I'm supposed to be using.