Schedule C - Requirements for C-EZ



Why am I getting a Schedule C instead of the C-EZ?
 

Beginning with tax year 2019, Schedule C-EZ has been eliminated by the IRS, and thus Schedule C-EZ will not be generated. No options related to Schedule C-EZ will exist starting in Drake19.

In Drake18 and prior, there are two possible reasons:

  1. Schedule C-EZ may be suppressed.
  • Within the return, verify that the Suppress Schedule C-EZ box is unchecked on the C screen:
Drake15 and prior:
 
In Drake16-Drake18: 
  • In Drake16-Drake18, it is possible that the Schedule C-EZ has been suppressed on the global basis. To check this option go to Setup > Options > Form and Schedule Options. In the Suppress EZ forms and schedules field make sure Suppress Schedule C-EZ is not marked. Click OK to save changes. 
  1. Schedule C-EZ cannot be used, and the software will not produce it, unless the taxpayer meets these conditions (see Part I of Schedule C-EZ). The taxpayer
    • Had business expenses of $5000 or less
    • Used the cash method of accounting
    • Did not have an inventory at any time during the year
    • Did not have a net loss from this business
    • Had only one business as either a sole proprietor, qualified joint venture, or statutory employee
    • Had no employees during the year
    • Did not deduct expenses for business use of the taxpayer's home
    • Did not have prior year unallowed passive activity losses from this business
    • Was not required to file Form 4562 Depreciation and Amortization

A common option that can prevent the C-EZ from from generating is under Setup > Options > Form and Schedule Options. The box you would want to look at is "Print form 4562 only when required." If this isn't checked, the 4562 will generate as long as there is depreciation and prevent the C-EZ from generating as well.