Schedule C (Form 1040), Profit or Loss from Business

Extract data from IRS Schedule C (Form 1040), Profit or Loss from Business — used by sole proprietors to report business income and expenses on their return.

The Schedule C (Form 1040), Profit or Loss from Business skill extracts data from Schedule C supplement documents to Forms 1040. A Schedule C is a document used by taxpayers to report income or loss from a business they operated or a profession they practiced as a sole proprietor. An activity qualifies as a business if:

• The primary purpose for engaging in the activity is for income or profit
• The reporter is involved in the activity with continuity and regularity

The Schedule C (Form 1040), Profit or Loss from Business skill is a preview skill. It has been trained on a limited set of documents and is designed to help you quickly get started with processing Schedule C documents. For production use, you may need to uptrain the skill with your own document samples.

This skill recognizes handwritten text. The option is enabled by default. If you do not import handwritten forms, disable the Handwritten option in the skill settings.

Countries and Languages

Countries	Languages
USA	English

Extracted Fields

Basic Information

Field	Description
Form	The Form 1040 supplement type (for example, 1040 Schedule C).
Year	The reporting fiscal year.
Name of Proprietor	The name of the proprietor.
Social Security Number (SSN)	The Social Security Number of the taxpayer.

Business Details

Field	Description
Principal Business or Profession	The principal business or profession, including product or service.
Code from Instructions	The principal business or professional activity code.
Business Name	The business name.
Employer ID Number (EIN)	The employer identification number (EIN).
Business Address	The business address (including suite or room number): city, town or post office, state, and ZIP code.

Accounting Method

Field	Description
Cash	The accounting method - Cash basis.
Accrual	The accounting method - Accrual basis.
Other (Specify)	The accounting method - Other method.
Other Method	The name of the other accounting method, if Other (Specify) is marked.

Business Activity

Field	Description
Material Participation in the Operation of This Business during This Year	Indicates whether the business activity was not a rental activity and met any of the material participation tests. Possible values: Yes, No.
Started or Acquired This Business during This Year	Indicates that the business was started or acquired during the current year.

Form 1099 Requirements

Field	Description
Any Payments during This Year	Specifies whether any payments requiring a Form 1099 to be submitted were carried out during the reporting year. Possible values: Yes, No.
Did You or will You File Required Forms 1099	Specifies whether the required Forms 1099 have been or will be submitted. Possible values: Yes, No. This field is filled in if the value in Any Payments during This Year is Yes.

Key Fields

• Year
• Social Security Number (SSN)

Validation Rules

Rule	Description
Form Fill	Sets the value of the Form field to “1040 Schedule C” if the corresponding string (“1040 Schedule C”) is detected in the document.
Clean_Employer_ID	Removes all non-numeric characters used as separators for the ID number in the Employer ID Number (EIN) field.
Clean_Code	Removes all non-numeric characters in the Code from Instructions field.