Common questions about Schedule C in ProSeries

For more Schedule C resources, check out our Tax topics page for Schedule C where you'll find answers to the most commonly asked questions.

Table of contents:

Entering self-employed health insurance on the Schedule C:

1. Open the Schedule C.
2. Scroll down to Line 15.
3. In the Self-employed health insurance field to the left of line 15 enter the amount paid in association with this Schedule C.
4. From here the amount flows to the Self-Employed Health and Long-Term Care Insurance Deduction Worksheet.
5. You may need additional entries to make on the Self-Employed Health Insurance Worksheet.  Click the QuickZoom button and verify the Self-Employed Health and Long-Term Care Insurance Deduction Worksheet.

Back to Table of Contents

How to show a Schedule C is exempt from SE Tax:

1. Open the Schedule C.
2. In the list of checkboxes above line A there are checkboxes for if the taxpayer has an approved Form 4029, or if the taxpayer has an approved Form 4361.
3. Checking the box applicable will remove the Schedule C income from the Schedule SE.

How to enter a Schedule C for Ministers, Clergy and members of other religious orders:

1. Open the Schedule C.
2. If they are exempt from SE Tax:
   • In the list of checkboxes above line A there are checkboxes for if the taxpayer has an approved Form 4029, or if the taxpayer has an approved Form 4361.
3. Enter any housing allowance on the line Enter your housing allowance here. See help.
   • If your client is not exempt from self-employment tax, the program includes this amount in self-employment earnings. You may need to adjust the net-self employmnet earnings flowing to the Schedule SE. The total Schedule C profit or loss, including any housing allowance received, carries to the Schedule SE Adjustment worksheet Part II, line 5. You may need to reduce your client's net earnings reported on Schedule SE by nondeductible expenses on Schedule C. Use the Schedule SE Adjustments Worksheet, Part II, Line 6 to make any adjustments.
4. Complete the income and expenses section.
5. If the taxpayer/spouse also received a W-2 go to the W-2 Worksheet and complete Part II - Clergy, church employees, members of recognized religious sects. This will allow you to select what portions of the W-2 should flow to the Schedule C.

How to flow wages from a W-2 to the Schedule C for a Statutory employee:

1. On the W-2 Worksheet enter the W-2 information as received.
2. Scroll down to Part I - Statutory employees.
3. Check the box on line A for Box 13a. Statutory employee.
4. Double click on line C to select the existing Schedule C to link this W-2 to.