Maria runs a small business out of her home.She has expenses of $2,000 per year and uses the cash basis method of accounting.Her only employee is her cousin who works for her part-time.What form should she use to report her business income?

Question

Quizplus · Accepted Answer

Maria should use Schedule C to report her business income since she is operating as a sole proprietor using the cash basis accounting method. Schedule A is used for itemized deductions, Schedule F is used for farm income, and Schedule B is used for interest and dividends. Schedule C-EZ is no longer available as an option.

Maria Runs a Small Business Out of Her Home