With business expenses subject to the 2% adjusted gross income threshold, do I enter the full expenses on the schedule C? Or only the amount exceeding 2%?

[tacticaltaxsolut]

For example, if my client has business income totaling $30,000, 2% is $600.
If the client's business expenses are $800, do I list all $800 of the business expenses or do I only list the amount that exceeds the 2% ($600) which would total $200?

[Camp1040]

What is the 2% rule? Do you mean 2% of  AGI for miscellaneous itemized deduction form Schedule A? 

[abctax55]

I'm not sure what the 2% limitation you are referencing is about.  Could you please explain a bit more?

[IRonMaN]

Please do your client a favor ------- refer them elsewhere.  You don't have the background to properly prepare that return.  Stick to what you do well this tax season and take some classes after tax season so you can be more up to speed on schedule C returns next year.

[abctax55]

Whew...  I was afraid I was going to have to amend a "few" returns.

[qbteachmt]

Read the Form or Schedule instructions. Look at the lines. If they need you to compute something, they typically have you enter it Gross, and then there is a line where the computed amount will go. You bought a Program. Why would you try to do something manually that is not even on that form or schedule? That's why everyone is confused. Where did you get this guidance from? You need to tell everyone what you are using as a reference.

[George4Tacks · Accepted solution]

On Schedule C you can deduct all of your legitimate expenses, even if they are greater than 100% of your business income. The 2% is a Schedule A rule. 

When in doubt, read the instructions.