1040 Schedule C

Introduction to the Course

As part of this exploration, significant emphasis will be placed on the evolving landscape of self-employment and the gig economy, a sector that increasingly challenges traditional approaches to tax reporting and preparation. The course will introduce learners to the unique tax obligations and opportunities confronting modern entrepreneurs and freelancers, equipping them to navigate the shifting terrain with greater confidence and precision.

The changing nature of work for many taxpayers is likely to affect tax preparers’ need to prepare Schedule C.

Whether the strength of the gig economy is due to the flexibility and freedom it affords, the fewer limits on income it exerts compared to being a wage earner or results from some other advantage it offers, it seems clear that, barring a cataclysmic event affecting the economy, the gig economy is here to stay and intent on growing larger with each year. With that growth is the likely growth of tax preparers to be familiar with the preparation of Schedule C. 

Course Learning Objectives

Upon completion of the course, the student should be able to:

• Identify the types of income reported on Schedule C;
• Determine proprietors’ installment sale income when using the installment method;
• Describe the business expenses deductible on Schedule C;
• List the differences between a business and a hobby; and
• Apply the rules governing the deduction for business use of a taxpayer’s home.