Pdftax Software License Agreement
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Suite A #176, Seattle, WA 98133.
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SCHEDULE C
(Form 1040)
Department of the Treasury
Internal Revenue Service (99)
Profit or Loss From Business
(Sole Proprietorship)
a
Go to www.irs.gov/ScheduleC for instructions and the latest information.
a
Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally must file Form 1065.
OMB No. 1545-0074
2020
Attachment
Sequence No.
09
Name of proprietor Social security number (SSN)
A Principal business or profession, including product or service (see instructions)
B Enter code from instructions
a
C Business name. If no separate business name, leave blank.
D
Employer ID number (EIN) (see instr.)
E
Business address (including suite or room no.)
a
City, town or post office, state, and ZIP code
F Accounting method: (1)
Cash (2) Accrual (3) Other (specify)
a
G Did you “materially participate” in the operation of this business during 2020? If “No,” see instructions for limit on losses .
Yes No
H If you started or acquired this business during 2020, check here .................
a
I Did you make any payments in 2020 that would require you to file Form(s) 1099? See instructions ........
Yes No
J If “Yes,” did you or will you file required Form(s) 1099? .....................
Yes No
Part I Income
1
Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on
Form W-2 and the “Statutory employee” box on that form was checked .........
a
1
2 Returns and allowances ......................... 2
3 Subtract line 2 from line 1 ........................ 3
4 Cost of goods sold (from line 42) ...................... 4
5 Gross profit. Subtract line 4 from line 3 .................... 5
6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) .... 6
7 Gross income. Add lines 5 and 6 .....................
a
7
Part II
Expenses. Enter expenses for business use of your home only on line 30.
8 Advertising ..... 8
9
Car and truck expenses (see
instructions).....
9
10 Commissions and fees . 10
11
Contract labor (see instructions)
11
12 Depletion ..... 12
13
Depreciation and section 179
expense deduction (not
included in Part III) (see
instructions) . ....
13
14
Employee benefit programs
(other than on line 19) . . 14
15
Insurance (other than health)
15
16 Interest (see instructions):
a
Mortgage (paid to banks, etc.)
16a
b Other ...... 16b
17
Legal and professional services
17
18 Office expense (see instructions) 18
19
Pension and profit-sharing plans .
19
20 Rent or lease (see instructions):
a
Vehicles, machinery, and equipment
20a
b Other business property . . . 20b
21 Repairs and maintenance . . . 21
22
Supplies (not included in Part III) .
22
23 Taxes and licenses ..... 23
24 Travel and meals:
a Travel ......... 24a
b
Deductible meals (see
instructions) ....... 24b
25 Utilities ........ 25
26 Wages (less employment credits) . 26
27 a Other expenses (from line 48) . . 27a
b Reserved for future use . . .
27b
28 Total expenses before expenses for business use of home. Add lines 8 through 27a ......
a
28
29 Tentative profit or (loss). Subtract line 28 from line 7 ................. 29
30
Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829
unless using the simplified method. See instructions.
Simplified method filers only: Enter the total square footage of (a) your home:
and (b) the part of your home used for business:
. Use the Simplified
Method Worksheet in the instructions to figure the amount to enter on line 30 .........
30
31 Net profit or (loss). Subtract line 30 from line 29.
• If a profit, enter on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you
checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3.
• If a loss, you must go to line 32.
}
31
32 If you have a loss, check the box that describes your investment in this activity. See instructions.
• If you checked 32a, enter the loss on both Schedule 1 (Form 1040), line 3, and on Schedule
SE, line 2. (
If you checked the box on line 1, see the line 31 instructions).
Estates and trusts, enter on
Form 1041, line 3.
• If you checked 32b, you must attach Form 6198. Your loss may be limited.
}
32a All investment is at risk.
32b
Some investment is not
at risk.
For Paperwork Reduction Act Notice, see the separate instructions.
Cat. No. 11334P Schedule C (Form 1040) 2020
Go to Navigation Page
Go to Form 4562
Deductable loss if different
Schedule C (Form 1040) 2020
Page 2
Part III Cost of Goods Sold (see instructions)
33
Method(s) used to
value closing inventory: a
Cost b Lower of cost or market c Other (attach explanation)
34
Was there any change in determining quantities, costs, or valuations between opening and closing inventory?
If “Yes,” attach explanation ..........................
Yes No
35 Inventory at beginning of year. If different from last year’s closing inventory, attach explanation . . .
35
36 Purchases less cost of items withdrawn for personal use .............. 36
37 Cost of labor. Do not include any amounts paid to yourself .............. 37
38 Materials and supplies ........................ 38
39 Other costs ............................ 39
40 Add lines 35 through 39 ........................ 40
41 Inventory at end of year ........................ 41
42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 ......
42
Part IV
Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9
and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must
file Form 4562.
43 When did you place your vehicle in service for business purposes? (month/day/year)
a
/ /
44 Of the total number of miles you drove your vehicle during 2020, enter the number of miles you used your vehicle for:
a
Business b Commuting (see instructions) c Other
45 Was your vehicle available for personal use during off-duty hours? ...............
Yes No
46 Do you (or your spouse) have another vehicle available for personal use?..............
Yes No
47a Do you have evidence to support your deduction? ....................
Yes No
b If “Yes,” is the evidence written? .........................
Yes No
Part V Other Expenses. List below business expenses not included on lines 8–26 or line 30.
48 Total other expenses. Enter here and on line 27a ................
48
Schedule C (Form 1040) 2020
Go to Navigation Page
Amortization
SCHEDULE SE
(Form 1040)
Department of the Treasury
Internal Revenue Service (99)
Self-Employment Tax
a
Go to www.irs.gov/ScheduleSE for instructions and the latest information.
a
Attach to Form 1040, 1040-SR, or 1040-NR.
OMB No. 1545-0074
2020
Attachment
Sequence No.
17
Name of person with self-employment income (as shown on Form 1040, 1040-SR, or 1040-NR)
Social security number of person
with self-employment income
a
Part I Self-Employment Tax
Note: If your only income subject to self-employment tax is church employee income, see instructions for how to report your income
and the definition of church employee income.
A
If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had
$400 or more of other net earnings from self-employment, check here and continue with Part I ........
a
Skip lines 1a and 1b if you use the farm optional method in Part II. See instructions.
1 a Net farm profit or (loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065),
box 14, code A .............................
1a
b
If you received social security retirement or disability benefits, enter the amount of Conservation Reserve
Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH
1b
( )
Skip line 2 if you use the nonfarm optional method in Part II. See instructions.
2
Net profit or (loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than
farming). See instructions for other income to report or if you are a minister or member of a religious order
2
3 Combine lines 1a, 1b, and 2 ......................... 3
4 a If line 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount from line 3 . 4a
Note: If line 4a is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions.
b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here .....
4b
c
Combine lines 4a and 4b. If less than $400, stop; you don’t owe self-employment tax. Exception: If
less than $400 and you had church employee income, enter -0- and continue .......
a
4c
5
a Enter your church employee income from Form W-2. See instructions for
definition of church employee income .............
5a
b Multiply line 5a by 92.35% (0.9235). If less than $100, enter -0- ............. 5b
6 Add lines 4c and 5b ........................... 6
7
Maximum amount of combined wages and self-employment earnings subject to social security tax or
the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2020 ........... 7
137,700
8
a
Total social security wages and tips (total of boxes 3 and 7 on Form(s) W-2)
and railroad retirement (tier 1) compensation. If $137,700 or more, skip lines
8b through 10, and go to line 11 ...............
8a
b Unreported tips subject to social security tax from Form 4137, line 10 . . . 8b
c Wages subject to social security tax from Form 8919, line 10 ...... 8c
d Add lines 8a, 8b, and 8c .......................... 8d
9 Subtract line 8d from line 7. If zero or less, enter -0- here and on line 10 and go to line 11 . . .
a
9
10 Multiply the smaller of line 6 or line 9 by 12.4% (0.124) ................ 10
11 Multiply line 6 by 2.9% (0.029) ........................ 11
12 Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 2 (Form 1040), line 4 .. 12
13 Deduction for one-half of self-employment tax.
Multiply line 12 by 50% (0.50). Enter here and on Schedule 1 (Form 1040),
line 14 ........................
13
Part II Optional Methods To Figure Net Earnings (see instructions)
Farm Optional Method. You may use this method only if (a) your gross farm income
1
wasn’t more than
$8,460, or (b) your net farm profits
2
were less than $6,107.
14 Maximum income for optional methods ..................... 14
5,640
15
Enter the smaller of: two-thirds (
2
/3) of gross farm income
1
(not less than zero) or $5,640. Also, include
this amount on line 4b above ........................
15
Nonfarm Optional Method. You may use this method only if (a) your net nonfarm profits
3
were less than $6,107
and also less than 72.189% of your gross nonfarm income,
4
and (b) you had net earnings from self-employment
of at least $400 in 2 of the prior 3 years. Caution: You may use this method no more than five times.
16 Subtract line 15 from line 14 ......................... 16
17 Enter the smaller of: two-thirds (
2
/3) of gross nonfarm income
4
(not less than zero) or the amount on
line 16. Also, include this amount on line 4b above .................
17
1
From Sch. F, line 9; and Sch. K-1 (Form 1065), box 14, code B.
2
From Sch. F, line 34; and Sch. K-1 (Form 1065), box 14, code A—minus the amount
you would have entered on line 1b had you not used the optional method.
3
From Sch. C, line 31; and Sch. K-1 (Form 1065), box 14, code A.
4
From Sch. C, line 7; and Sch. K-1 (Form 1065), box 14, code C.
For Paperwork Reduction Act Notice, see your tax return instructions.
Cat. No. 11358Z Schedule SE (Form 1040) 2020
Go to Navigation Page
K-1 Income / Loss
Schedule SE (Form 1040) 2020
Attachment Sequence No. 17 Page 2
Part III Maximum Deferral of Self-Employment Tax Payments
If line 4c is zero, skip lines 18 through 20, and enter -0- on line 21.
18 Enter the portion of line 3 that can be attributed to March 27, 2020, through December 31, 2020 . .
18
19
If line 18 is more than zero, multiply line 18 by 92.35% (0.9235); otherwise, enter the amount from line 18
19
20
Enter the portion of lines 15 and 17 that can be attributed to March 27, 2020, through December 31,
2020 ................................
20
21 Combine lines 19 and 20 .......................... 21
If line 5b is zero, skip line 22 and enter -0- on line 23.
22 Enter the portion of line 5a that can be attributed to March 27, 2020, through December 31, 2020 . .
22
23 Multiply line 22 by 92.35% (0.9235) ...................... 23
24 Add lines 21 and 23 ........................... 24
25 Enter the smaller of line 9 or line 24 ...................... 25
26
Multiply line 25 by 6.2% (0.062). Enter here and see the instructions for line 12e of Schedule 3 (Form
1040) ................................
26
Schedule SE (Form 1040) 2020
Go to Navigation Page
Section C—Assets Placed in Service During 2020 Tax Year Using the Alternative Depreciation System
Form 4562
Department of the Treasury
Internal Revenue Service (99)
Depreciation and Amortization
(Including Information on Listed Property)
a
Attach to your tax return.
a
Go to www.irs.gov/Form4562 for instructions and the latest information.
OMB No. 1545-0172
2020
Attachment
Sequence No.
179
Name(s) shown on return Business or activity to which this form relates Identifying number
Part I
Election To Expense Certain Property Under Section 179
Note: If you have any listed property, complete Part V before you complete Part I.
1 Maximum amount (see instructions) ....................... 1
2 Total cost of section 179 property placed in service (see instructions) ........... 2
3 Threshold cost of section 179 property before reduction in limitation (see instructions) ...... 3
4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- .......... 4
5
Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing
separately, see instructions .........................
5
6
(a) Description of property (b) Cost (business use only) (c) Elected cost
7 Listed property. Enter the amount from line 29 ......... 7
8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 ...... 8
9 Tentative deduction. Enter the smaller of line 5 or line 8 ................ 9
10 Carryover of disallowed deduction from line 13 of your 2019 Form 4562 ........... 10
11
Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instructions
11
12 Section 179 expense deduction. Add lines 9 and 10, but don’t enter more than line 11 ...... 12
13 Carryover of disallowed deduction to 2021. Add lines 9 and 10, less line 12
a
13
Note: Don’t use Part II or Part III below for listed property. Instead, use Part V.
Part II
Special Depreciation Allowance and Other Depreciation (Dont include listed property. See instructions.)
14
Special depreciation allowance for qualified property (other than listed property) placed in service
during the tax year. See instructions .......................
14
15 Property subject to section 168(f)(1) election .................... 15
16 Other depreciation (including ACRS) ...................... 16
Part III MACRS Depreciation (Dont include listed property. See instructions.)
Section A
17 MACRS deductions for assets placed in service in tax years beginning before 2020 .......
17
18
If you are electing to group any assets placed in service during the tax year into one or more general
asset accounts, check here ......................
a
Section B—Assets Placed in Service During 2020 Tax Year Using the General Depreciation System
(a) Classification of property
(b) Month and year
placed in
service
(c) Basis for depreciation
(business/investment use
only—see instructions)
(d) Recovery
period
(e) Convention (f) Method (g) Depreciation deduction
19a 3-year property
b 5-year property
c 7-year property
d 10-year property
e 15-year property
f 20-year property
g 25-year property
25 yrs. S/L
h Residential rental
27.5 yrs. MM S/L
property
27.5 yrs. MM S/L
i Nonresidential real
39 yrs. MM S/L
property
MM S/L
20a Class life
S/L
b 12-year
12 yrs. S/L
c 30-year
30 yrs. MM S/L
d 40-year
40 yrs. MM S/L
Part IV Summary (See instructions.)
21 Listed property. Enter amount from line 28 .................... 21
22
Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter
here and on the appropriate lines of your return. Partnerships and S corporations—see instructions .
22
23
For assets shown above and placed in service during the current year, enter the
portion of the basis attributable to section 263A costs .........
23
For Paperwork Reduction Act Notice, see separate instructions.
Cat. No. 12906N
Form 4562 (2020)
Go to Navigation Page
Wages & Other Business Inc
Go to Special Depreciation Election Options
HY
200 DB
HY
200 DB
HY
200 DB
HY
200 DB
HY
150 DB
HY
150 DB
HY
MM Jan
MM Jan
MM Jan
MM Jan
Amortization of costs that begins during your 2020 tax year (see instructions):
Form 4562 (2020)
Page 2
Part V Listed Property (Include automobiles, certain other vehicles, certain aircraft, and property used for
entertainment, recreation, or amusement.)
Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a,
24b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable.
Section A—Depreciation and Other Information (Caution: See the instructions for limits for passenger automobiles.)
24a
Do you have evidence to support the business/investment use claimed?
Yes No
24b
If “Yes,” is the evidence written?
Yes No
(a)
Type of property (list
vehicles first)
(b)
Date placed
in service
(c)
Business/
investment use
percentage
(d)
Cost or other basis
(e)
Basis for depreciation
(business/investment
use only)
(f)
Recovery
period
(g)
Method/
Convention
(h)
Depreciation
deduction
(i)
Elected section 179
cost
25
Special depreciation allowance for qualified listed property placed in service during
the tax year and used more than 50% in a qualified business use. See instructions .
25
26 Property used more than 50% in a qualified business use:
%
%
%
27 Property used 50% or less in a qualified business use:
%
S/L –
%
S/L –
%
S/L –
28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 . 28
29 Add amounts in column (i), line 26. Enter here and on line 7, page 1 ............ 29
Section B—Information on Use of Vehicles
Complete this section for vehicles used by a sole proprietor, partner, or other “more than 5% owner,” or related person. If you provided vehicles
to your employees, first answer the questions in Section C to see if you meet an exception to completing this section for those vehicles.
30
Total business/investment miles driven during
the year (don’t include commuting miles) .
(a)
Vehicle 1
(b)
Vehicle 2
(c)
Vehicle 3
(d)
Vehicle 4
(e)
Vehicle 5
(f)
Vehicle 6
31
Total commuting miles driven during the year
32 Total other personal (noncommuting)
miles driven .........
33 Total miles driven during the year. Add
lines 30 through 32 .......
34 Was the vehicle available for personal
Yes No Yes No Yes No Yes No Yes No Yes No
use during off-duty hours? .....
35 Was the vehicle used primarily by a more
than 5% owner or related person? . .
36
Is another vehicle available for personal use?
Section C—Questions for Employers Who Provide Vehicles for Use by Their Employees
Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who aren’t
more than 5% owners or related persons. See instructions.
37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by
your employees? ................................
Yes No
38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your
employees? See the instructions for vehicles used by corporate officers, directors, or 1% or more owners . .
39 Do you treat all use of vehicles by employees as personal use? ................
40 Do you provide more than five vehicles to your employees, obtain information from your employees about the
use of the vehicles, and retain the information received? ...................
41 Do you meet the requirements concerning qualified automobile demonstration use? See instructions. ....
Note: If your answer to 37, 38, 39, 40, or 41 is “Yes,” don’t complete Section B for the covered vehicles.
Part VI Amortization
(a)
Description of costs
(b)
Date amortization
begins
(c)
Amortizable amount
(d)
Code section
(e)
Amortization
period or
percentage
(f)
Amortization for this year
42
43 Amortization of costs that began before your 2020 tax year ............. 43
44 Total. Add amounts in column (f). See the instructions for where to report ........ 44
Form 4562 (2020)
Go to Navigation Page
Go to Navigation Page
Go to Special Depreciation Election Options
Go to Navigation Page
Go to Bonus Depreciation Statement
Go to Next Page
3 Year Class Property - 100% Bonus Depreciation Allowance
If qualified, check here if you elect to not claim the special 100% bonus depreciation allowance for assets in the 3 year property
class ..............................................................................................................................................................................................................
5 Year Class Property - 100% Bonus Depreciation Allowance
If qualified, check here if you elect to not claim the special 100% bonus depreciation allowance for assets in the 5 year property
class ..............................................................................................................................................................................................................
7 Year Class Property - 100% Bonus Depreciation Allowance
If qualified, check here if you elect to not claim the special 100% bonus depreciation allowance for assets in the 7 year property
class ..............................................................................................................................................................................................................
10 Year Class Property - 100% Bonus Depreciation Allowance
If qualified, check here if you elect to not claim the special 100% bonus depreciation allowance for assets in the 10 year property
class ..............................................................................................................................................................................................................
15 Year Class Property - 100% Bonus Depreciation Allowance
If qualified, check here if you elect to not claim the special 100% bonus depreciation allowance for assets in the 15 year property
class ..............................................................................................................................................................................................................
20 Year Class Property - 100% Bonus Depreciation Allowance
If qualified, check here if you elect to not claim the special 100% bonus depreciation allowance for assets in the 20 year property
class ..............................................................................................................................................................................................................
Go to Navigation Page
Depreciation overrides for Schedule C and 4562
Override Schedule C, Line 13, depreciation . . . . . . . . . . . . . . .
Override Form 4562, 3-year property . . . . . . . . . . . . . . . . . . . .
Override Form 4562, 5-year property . . . . . . . . . . . . . . . . . . . .
Override Form 4562, 7-year property . . . . . . . . . . . . . . . . . . . .
Override Form 4562, 10-year property . . . . . . . . . . . . . . . . . . . .
Override Form 4562, 15-year property . . . . . . . . . . . . . . . . . . . .
Override Form 4562, 20-year property . . . . . . . . . . . . . . . . . . . .
Override Form 4562, 25-year property . . . . . . . . . . . . . . . . . . . .
Override Form 4562, first residential rental property . . . . . . . . . . . . . . .
Override Form 4562, second residential rental property . . . . . . . . . . . . . . .
Override Form 4562, first nonresidential real property . . . . . . . . . . . . . . .
Override Form 4562, second nonresidential real property . . . . . . . . . . . . . . .