Lump Schedule

Lump Schedule

1. For Lump's Schedule C, box B, Business category, use your software to pick out an appropriate code. The software will calculate the self-employment tax and any other forms necessary.
Notice that Lump made estimated federal income tax payments. use the payments section of your software to enter these payments. Note Yr 1 = 2015, Yr 2 = 2016 and Yr 3 = 2017.
Your software may generate a Schedule A, which should be included with the tax return.
Lump should receive a $23,937 refund.

2. For Russell’s Schedule C, fill in a description for line A. Assume the home office is used regularly and exclusively for the landscaping business. When the problem says, "The business is operated out of their home," it means the business is operated from their home.

Make sure to fill out the forms completely, as if you were going to send it to the IRS. In other words, don't skip the social security numbers, address or occupation, etc.

The Long's are expecting a $3,117 refund.

 
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