@Teachdog3500
Here are some quick thoughts, but please see the Instructions for Schedule C for more information.
1)Schedule C: Accounting Method must be entered? Cash, Accrual, or Other:
Many small businesses without inventories use the cash method, since it's fairly straightforward. The fact that you receive income via direct deposit isn't really relevant to which method you're using -- just picture it as normal payment by check or cash.
The choice between cash versus accrual accounting is a business decision, so that's not really something that we're allowed to advise on. However, please see the TurboTax FAQs below for additional information.
What is the Cash Method of Accounting?
What is the Accrual Method of Accounting?
Unless you are a small business taxpayer, you must use an accrual method for sales and purchases of inventory items.
2)Did you materially participate in the operation of this business in 2019? If no, see instructions for limit of loses???? Please see the paragraph beginning For purposes of the passive activity rules to the right of Line G in the Instructions for Schedule C, which you might want to look at. This will help you make a determination.
3)Did you make any payments during 2019 that would require you to file a 1099? You probably didn't, but see Line I in the instructions, linked above.
Is this activity a qualified trade or business under section 199A? You'll need to determine this. Please see the TurboTax Help article What is the Qualified Business Income (QBI) deduction? for guidance.
4) Principle Business Code? Probably 813000, Religious, grantmaking, civic, professional, & similar organizations. See Principal Business or Professional Activity Codes in the Schedule C link above.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
