Schedule C-EZ is a simpler version of the normal Schedule C. You attach to your 1040 to report income and expenses, and ultimately your net profit or loss, from your small business. As a simplified version of the form, Schedule C-EZ can save you time and trouble. It makes sense to file Schedule C-EZ if you operate a business as a sole proprietorship or qualified joint venture, or were a statutory employee, and over the course of the year met the following requirements: You made a net profit You did not have more than $5,000 of business expenses You did not have any employees You did not have any inventory You are not using depreciation (Form 4562) for this business You are not deducting expenses for the business use of your home Refer to Part I of Schedule C-EZ for a more detailed list of requirements. If you meet all of them, you can file Schedule C-EZ. If not, you’ll have to file a normal Schedule C.