Schedule C - Cost of Goods Sold

Generally, if you engaged in a trade or business in which the production, purchase, or sale of merchandise was an income-producing factor, you must take inventories into account at the beginning and end of your tax year. As a general rule, businesses that make or buy goods to sell may deduct the cost of goods sold from their gross receipts in computing business income. This information applies [...]

Schedule C - Statutory Employee

If you received a Form W-2 and the "Statutory employee" box in box 13 of that form was checked, report your income and expenses related to that income on Schedule C. Enter your statutory employee income from box 1 of Form W-2 on line 1 of Schedule C and check the box on that line. Social Security and Medicare tax should have been withheld from your earnings; therefore, you do not owe [...]

Schedule C - Material Participation

Material participation. For purposes of the seven material participation tests listed later, participation generally includes any work you did in connection with an activity if you owned an interest in the activity at the time you did the work. The capacity in which you did the work does not matter. However, work is not treated as participation if it is work that an owner would not customarily do [...]

Schedule C - Accounting Method

Generally, you can use the cash method, accrual method, or any other method permitted by the Internal Revenue Code. In all cases, the method used must clearly reflect income. Unless you are a qualifying taxpayer or a qualifying small business taxpayer, you must use the accural method for sales and purchases of inventory items. Special rules apply to long-term contacts. If you use the cash [...]

District of Columbia Out-of-State Tax Credit

Out of State tax credit. The amount DC domiciliary taxpayers may claim as a credit for individual income tax paid to other state(s) if the income taxed by that state is derived from that state and that income is of a kind taxed by DC. The tax paid to a state is the total state tax liability shown on the state tax return. (It is not the state withholding shown on your Form W-2.) The credit is [...]