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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?
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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.
Answers are easy. Questions are hard!
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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.
Slava Ukraini!
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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.
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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.
Answers are easy. Questions are hard!