Knowledge Base

11809: Schedule C - Special Tax Treatment

1040 Individual Data Entry

What Special Tax Treatment options are available for the Schedule C in the 1040 package?

Note: Meals subject to DOT hours checkbox has been removed due to the changes to line 24 in data entry. Line 24 has been broken down into 3 separate lines for Travel, 50% Meals, and 80% Meals.

The following special tax treatment options are available in Drake Tax: 

  • Professional gambler (limits the loss to zero),
  • Exempt notary income,
  • Paper boy excluded from SE,
  • Military Spouses Residence Relief Act,
  • LLC#
    • Used to tie the Schedule C data entry screen to certain state forms that allow for a Single Member LLC (SMLLC) filing. 

In Drake19, the Military Spouses Residence Relief Act and LLC# entries have been moved to the Carryovers/State Info tab. 

In Drake16 and Drake17, special tax treatments are selected by marking the applicable check boxes. The LLC # field is used to tie the Schedule C to certain state forms.

In Drake15 and prior, Special Tax Treatment codes for the Schedule C are available from the Income tab > C Self-Employed Income screen. These codes indicate that a special circumstance applies to a particular Schedule C. Select the applicable code from the Special Tax Treatment drop list:

  • N - Exempt notary income
  • D - Meals are subject to the DOT hours of service rules
  • P - Paper boy excluded from SE (under age 18)
  • R - Qualifying income under the Military Spouses Residency Relief Act
  • S - SMLLC

For detailed descriptions of each Special Tax Treatment code and its use, see Related Links below.

Related Links

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