<p>My parents are sole proprietors and they say that the only way they report business income is through schedule c-ez on their personal income tax return. However one of my schools that i'm applying aid for wants them to file business taxes.. my parents have already sent in their personal tax returns and business supplement. The school says they are required to collect business tax returns. Does anybody know which form and schedules are required for the business? My parents just started this business last year.</p>
<p>Many small business report business income and expenses on Schedule C, which is submitted along with their personal income tax on Schedule 1040. Not sure what your school is talking about, unless perhaps you didn't give them (or didn't file) the Schedule SE, which calculates the Social Security tax that's due based on self employment income.</p>
<p>Ask the folks if they filed sched SE and paid social security tax on the business income. If there wasn't a net profit, no form SE would be required.</p>
<p>I sent in the SE too... could it be that they mixed up small business with corporation?</p>