Common questions about Schedule C in ProSeries

Get answers to frequently asked questions about Schedule C:

• Generating and e-filing a single member LLC in ProSeries
• Reporting statutory employee income on the W-2
• Entering Form 1099-MISC in ProSeries
• Completing the Car and Truck Expenses Worksheet in ProSeries
• How to enter and calculate the qualified business income deduction, section 199A, in ProSeries
• “Section 179 on multiple activities being limited” error message on Individual return
• Common questions on the Asset Entry Worksheet in ProSeries
• Calculation of SE Health Insurance Deduction when claiming the Premium Tax Credit on Form 8962

Entering self-employed health insurance on the Schedule C:

1. Open the Schedule C.
2. Scroll down to Line 15.
3. In the Self-employed health insurance field to the left of line 15 enter the amount paid in association with this Schedule C.
4. From here the amount flows to the Self-Employed Health and Long-Term Care Insurance Deduction Worksheet.
5. You may need additional entries to make on the Self-Employed Health Insurance Worksheet.  Click the QuickZoom button and verify the Self-Employed Health and Long-Term Care Insurance Deduction Worksheet.

How do I show a Schedule C is exempt from SE Tax?

1. Open the Schedule C.
2. In the list of checkboxes above line A there are checkboxes for if the taxpayer has an approved Form 4029, or if the taxpayer has an approved Form 4361.
3. Checking the box applicable will remove the Schedule C income from the Schedule SE.

How do I enter a Schedule C for Ministers, Clergy and members of other religious orders?

1. Open the Schedule C.
2. If they are exempt from SE Tax:
   • In the list of checkboxes above line A there are checkboxes for if the taxpayer has an approved Form 4029, or if the taxpayer has an approved Form 4361.
3. Enter any housing allowance on the line Enter your housing allowance here. See help.
   • If your client is not exempt from self-employment tax, the program includes this amount in self-employment earnings. You may need to adjust the net-self employmnet earnings flowing to the Schedule SE. The total Schedule C profit or loss, including any housing allowance received, carries to the Schedule SE Adjustment worksheet Part II, line 5. You may need to reduce your client's net earnings reported on Schedule SE by nondeductible expenses on Schedule C. Use the Schedule SE Adjustments Worksheet, Part II, Line 6 to make any adjustments.
4. Complete the income and expenses section.