In the current year, Johnice started a profitable bookkeeping business as a sole proprietor.Johnice made $38,000 in her first year of operation.What two forms must Johnice file for her business?
A)Schedules A and C
B)Schedules D and E
C)Schedule SE and C
D)Schedules B and C
E)None of the above

Question

Quizplus · Accepted Answer

As a sole proprietor, Johnice is required to file both Schedule SE (Self-Employment Tax) and Schedule C (Profit or Loss from Business) with her personal tax return. These forms report her business income and expenses and determine the amount of self-employment tax she owes. Therefore, the correct choice is C – Schedule SE and C. A, B, D, and E are not the correct answers, as they either do not apply to Johnice's business or are not required for sole proprietors.

In the Current Year, Johnice Started a Profitable Bookkeeping Business