Looks like I easily meet the requirements to use Schedule C-EZ for 2014. Any reason not to do so?

Thanks for any advice.

The only limitation I have found is you cannot electronically file a Schedule C-EZ if you are also filing a regular Schedule C for another business activity.

Whatever your software lets you do is fine. The C-EZ just eliminates all the categories that may not apply to you. We don't really have that many kinds of deductions for mystery shopping, mostly mileage and some paper and toner. If you don't have a home office and don't have a business computer to depreciate, a C-EZ is probably just fine. The bottom line is all that goes into the tax computation.

The IRS considers all your schedule C's in a pile -- only one figure flows to the Business income line on the 1040 no matter how many you have -- so it makes sense that it wouldn't combine a C and a C-EZ because the line numbers are different.

My wife went to tax person at Walmart today to have her taxes done and she was told that we have to file together no separately unless divorced on 12-31-14. She was talking to one of her friends at work later and was told that they shouldn't be approached with a 10 foot pole because they had cost her about $6000. on the return with fines and bad info.

Just a note of warning: Don't assume that because a preparer works for ANY tax service it means he is experienced.

After distributing W2s at my state agency, an employee called to tell me H&R Block said his W2 was wrong and it needed correction. His refund was $1800 less than in past years (same income, deductions, withholding, etc). His tax preparer said the reason was a large amount of money shown in the "DD" box of the W2. The "DD" box shows medical/dental, life and other insurance paid by the state or the employee. The amount in that box is Nontaxable. The examiner had included it as taxable income, tremendously lowering the refund due. When questioned, the examiner said the W2 was wrong. The back of the W2 clearly saiys "DD - "Cost of employer-sponsored health coverage. The amount reported with code DD is not taxable."

Be careful selecting the individual who prepares your taxes.

I carefully selected myself

@2stepps wrote:

My wife went to tax person at Walmart today to have her taxes done and she was told that we have to file together no separately unless divorced on 12-31-14. She was talking to one of her friends at work later and was told that they shouldn't be approached with a 10 foot pole because they had cost her about $6000. on the return with fines and bad info.

They're partially right. You have to file *married* unless you were divorced by 12/31. You can file Married Filing Separate if you want (so if that's really what they said the couple couldn't do, they were idiots who have no business preparing taxes for anyone) but *both* would have to file that way, but that's the worst filing status you can use because if you do that you give up a lot of opportunities for tax credits and if you're in a community property state and were living together during 2014 you have to split half of the community income on each return anyway, negating any opportunity to manipulate the refunds by putting more deductions on one than that other. And you both either have to itemize or have to take the standard deduction. So unless you don't trust your spouse to share the refund with you, there is little reason to file married separate (and even then, the refund can be split between two bank accounts). And you cannot file Single at all if you're legally married and cannot file Head of household unless you did not live together (can't remember if it was all year or in the last six months and too lazy to go look).

I've had to tell more than one client that no, they cannot file Single if they are married. Even gay couples who marry can no longer file Single on the Federal return (states may vary).

Generally the most common use of Married Filing Separate is when the couple is separated but not yet divorced, one has the kids and can file Head of Household, leaving the other spouse no option but to file Married Filing separate (unless each has custody of at least one kid and they both can file HoH).

Some people file separate when they don't have to because one spouse owes back child support. But you can file for innocent spouse relief to protect the non-deadbeat spouse from having their refund garnisheed.

You are responsible for what they do. If they do it wrong, make a mistake, interpret something incorrectly, you are liable anyway. I found that since I have to review everything and am ultimately liable I might as well do it myself. I'm not going to pay them to sort papers and add up columns of numbers for me.