Help Me Create a Profit/Loss Statement For My Business

Schedule C,  Profit or Loss from Business is the IRS form that includes the income and expenses related to your sole proprietorship. This form can be very complicated and confusing, particularly if this year is the first time you will file a Schedule C.

The Schedule C is an attachment to your personal tax return, form 1040. The Schedule C includes all of the income and expense items associated with your business and calculates the net income or loss from the business. The total from the Schedule C is then included on the face of the form 1040. You are not required to file a Schedule C other than with your annual tax return, typically on April 15th. Even though you may be required to make estimated tax payments on a quarterly basis, the Schedule C is only filed at the end of the year.

The Schedule C Planning Tool will help you complete an estimated Schedule C using easy to understand descriptions of the income and expense items that you incur in operating your business. You can also take a look at a completed sample Schedule C to help you along the way.

Once you're done, you can use your personal Schedule C to help you plan for changes in your business by calculating various "what if" scenarios.  You can quickly determine the impact on your net earnings, your Estimated Taxes and your Self Employment Taxes from a change in any line item.

Use the Schedule C Planning Tool to Generate a
Profit / Loss Statement for Your Business.