Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Business; Form 1040, Line 12 Workout

Completing Schedule C

Part II: Expenses

There is a separate line on Schedule C for the most common expenses that are incurred in a business. Review the taxpayer's information to determine if the expenses are ordinary and necessary.

Part III, Cost of Goods Sold, and inventory are out of scope for the VITA/TCE programs.

Part IV, Information on Your Vehicle, includes information for claiming the standard mileage rate for vehicle expenses.

Part V, Other Expenses, includes all ordinary and necessary expense not deducted elsewhere on Schedule C.

Schedule C, Part 2 Expenses.
Schedule C

Schedule C