11809: Schedule C - Special Tax Treatment

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 separate lines for Travel, 50% Meals, and 80% Meals, and 100% Meals.

The following special tax treatment options are available for Schedule C in Drake Tax.

• Professional gambler (limits the loss to zero)
  • Select this box if this Schedule C is for a professional gambler. Due to the passage of the Tax Cuts and Jobs Act, no losses are allowed for a professional gambler operating as a sole proprietor. Checking this box will limit a loss to "0" (zero).
• Exempt notary income
  • Select this box if all of the income reported on this Schedule C is "Notary" income exempt from self-employment tax.
• Paper route excluded from SE
  • Select this box to indicate that this activity is exempt from SE tax because the taxpayer is under age 18 and is delivering newspapers to customers.
• Clergy Schedule C indicator 
  • If this Schedule C belongs to a clergy, select "Yes"; otherwise, select "No." See Related Links below for details. 

State Use Only (located on the Carryovers/State Info tab). 

• Native American income 
  • Mark this box if the person lived in an Indian county and the income was derived from that county. According to the Buck's Act, states cannot tax income of persons who live in an Indian county and derived income from that county.
• Military Spouses Residence Relief Act
  • Mark this box if this business belongs to a military spouse entitled to relief under the Military Spouses Residence Relief Act.
• Classified as an employees for CA Purposes
  • Mark this box if the business is classified as a employee by the state of California. Some individuals may be classified as independent contractors for federal purposes and employees for California purposes, which may also cause changes in how their income and deductions are classified for California purposes.
• LLC#
  • Used to tie the Schedule C data entry screen to certain state forms that allow for a Single Member LLC (SMLLC) filing see Related Links below for details.