Schedule C vs Schedule C-EZ

Schedule C is the tax form that reports business income including side gigs, independent contractor work, and sole proprietorships.

The IRS used to have a separate Schedule C-EZ for smaller activities like side gigs. For IRS purposes, everything now goes on Schedule C.

For billing purposes, I still have different rates for Schedule C and Schedule C-EZ.

You qualify for the Schedule C-EZ rate if your business activity meets the old IRS rules for Schedule C-EZ:

  • Under $5,000 in expenses
  • Use the cash method of accounting
  • No inventory, employees, or depreciation
  • Not taking the home office deduction
  • Don’t have a current year net loss
  • Not carrying over a loss from a previous year