What income tax form does a self-employed sole proprietor usually use to report business income and expense?
A)Schedule A, Miscellaneous Itemized Deductions
B)Schedule B
C)Schedule C
D)Form 2106, Employee Business Expenses
E)None of the above

Question

Quizplus · Accepted Answer

A self-employed sole proprietor typically uses Schedule C to report business income and expenses on their personal income tax return. This form calculates their net profit or loss for the year, which is then reported on their Form 1040. Schedule A is used for itemized deductions other than business expenses, Schedule B is used for interest and dividend income, and Form 2106 is used for employee business expenses (which would not apply to a sole proprietor).

What Income Tax Form Does a Self-Employed Sole Proprietor Usually