Take a moment to review what you have covered in this lesson:
- Business income or loss is generally beyond the scope of VITA or TCE. However, in some cases, you may help self-employed taxpayers who qualify to use Schedule C-EZ or limited Schedule C.
- Qualified Medicaid waiver payments are treated as difficulty of care payments and are excludable from gross income.
- Where to get business income and expense information.
- Cash income must be reported.
- Additional inquiries about the taxpayer's income and expenses may be necessary to ensure an accurate return.
- Certain situations involving Schedule C and EIC should raise "red flags."
- Who can use Schedule C-EZ.
- Taxpayers with net self-employment income of $400 or more must complete Schedule SE to compute self-employment tax.
- How to determine what records to maintain.
- How to complete simple record reconstruction.