Does it matter that my expenses were under Schedule A instead of Schedule C?

[Anita01 · Accepted solution]

Yes, it does matter.  Schedule A is only for personal itemized deductions and only lower your income tax.  Schedule C deductions lower your Self-Employment tax as well as your income tax.

[hamptonembroider]

If you are filing a business return, the expenses need to be on a schedule C under that business name.   I don't know how to correct it if you have already filed, other than file an amended return.  If you put your expenses on a Schedule A, it comes off as a deduction from your taxable income, but, the Schedule C expenses come off your gross income.  It does make a lot of difference.