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,
- 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.