The Schedule C - Profit or Loss From Business or Profession tab is used to enter the amounts found on the Tax Return's Schedule C, Form 8829, and the FSP 1040 Supplement - Payments on Principal of the Purchase Price documents.
Different programs may use different entry lines. Enter information on each line that has a corresponding amount on the tax schedule. When different programs might use different amounts, the line specifies the program (PA or FSP). Enter the amount in both spaces as other programs may be added later. Budgeting rules will use the information entered to compute the countable income based on the rules for each program.
When previously entered tax information is displayed. Update by overlaying the information.
Depletion: Enter the amount from Line 12 on the Schedule C.
Depreciation: Enter the amount from Line 13 on the Schedule C.
PA - Deductible Portion of Meal/Entertainment Expense: Enter the amount from Line 24d on the Schedule C.
FSP - disallowed items from Line 27: Enter the total amount of items disallowed by policy on Line 27. This may not be the total amount on line 27 of the tax schedule C. The items are found on the reverse side of Schedule C under Part V. If you are unsure which items are not allowable, contact a FSP policy specialist. Enter only the total amount of claimed deductions that the policy does not allow.
PA - disallowed items from Line 27: Enter the total amount of items disallowed by policy on Line 27. This may not be the total amount on line 27 of the tax schedule C. The items are found on the reverse side of Schedule C under Part V. If you are unsure which items are not allowable, contact a PA policy specialist. Enter only the total amount of claimed deductions that the policy does not allow.
Tentative Profit or Loss: If there is a profit - enter the amount from Line 29 on the Schedule C in the first field. If there is a loss - enter the amount from Line 29 on the Schedule C in the second field.
PA - Business Use of home: Enter the amount from Line 30 on the Schedule C. Public Assistance programs use this amount to deduct housing expenses as a cost of doing business.
FSP - Shelter as a cost of doing business: The Food Stamp program uses this amount when the client chooses to use a percentage of housing expenses as a self employment cost of doing business. See: SE Housing expense example.
FORM 8829:
PA - Depreciation of the home: Enter the depreciation of the home figure from Line 31 on Form 8829, not line 31 on Schedule C.
FSP - 1040 Supplement - Payment on Principal of the Purchase Price: Enter the amount from the "Food Stamp Program tool FSP1040 Supplemental" found in the FSP Best Practices Log and completed by the self employed person . Self employment for tax year 2001 or earlier will not have this figure.
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NFO2BB31K(513)
05-06-08