In this 3-minute read:
- What new PPP rules can have big impacts on loan amounts for Schedule C borrowers?
- Do I need to have a 1040 Schedule C to apply for a PPP loan?
- What if I haven’t filed my taxes for 2020 yet? Can I still get a PPP loan using my 1040 Schedule C?
- Is there a minimum net profit amount I need to show on line 31 of the 1040 Schedule C to qualify for a PPP loan?
- How do i find my 1040 Schedule C? (examples for self-prepared, tax assistants, tax prep software)
What changes to the PPP loan process can have a huge impact on Schedule C applicants?
IMPORTANT PPP UPDATE: As of March 3, 2021, applicants who report their income with IRS Form 1040 Schedule C (i.e., most independent contractors, sole proprietors, and 1099 workers) will be able to use their GROSS (instead of net) profits to determine their max loan amount. This can make a big impact on the amount you can borrow, depending on how much you make and how you have reported your profits. Read more about the latest 1040 Schedule C/PPP loan rules changes, and see the new rules, and the new PPP application form for Schedule C applicants.
Do I need to have a 1040 Schedule C to apply for a PPP loan?
Most SBA-approved lenders have been requiring a 1040 Schedule C as part of the PPP application, and while it may be possible to prove your income using other documentation, your application and approval process will be much faster if you can provide a Schedule C 1040 as part of your application. Your lender may work with you to prove your income using other documentation, though, particularly if you’re an eligible self-employed individual or independent contractor, so be sure to check with them. Let Womply help you start your free PPP application!
What if I haven’t filed my taxes for 2020 yet? Can I still get a PPP loan using my 1040 Schedule C?
Yes. We recommend you complete your form 1040 Schedule C accurately and submit it to your PPP lender with your other documentation. You can attest to the accuracy of the 2020 form and they can use it as evidence of your income, even if you haven’t officially filed your 2020 taxes yet.
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Is there a minimum net profit amount I need to show on line 31 (now line 7) of the 1040 Schedule C to qualify for a PPP loan?
Yes. The minimum PPP loan amount is currently $1000. So in order to qualify, you need to show at least $4800 in net profit on your 1040 Schedule C, since the PPP loan amount is calculated at 2.5 times your average monthly revenue. $4800 (annual net profit) ÷12 (months) X 2.5 = $1000. If you didn’t earn at least $4800 in 2019 or 2020 as an independent contractor, self employed individual, sole proprietor, etc. you don’t qualify for a PPP loan at this time.
Please note: as of March 3 2021, applicants using Schedule C to apply for PPP loans will be able to use GROSS profits, rather than NET, in calculating their max PPP loan amounts. Read more about the latest 1040 Schedule C/PPP loan rules changes, and see the new rules, and the new PPP application form for Schedule C applicants.
How do i find my 1040 Schedule C?
If you use one of the popular online tax filing programs, please see our guides below. Otherwise, check your files for copies of prior tax returns, or speak to your tax preparer or accountant (if you use one), who will likely be able to provide you a copy.
You can also get various transcripts of your prior tax returns for free directly from the IRS using their “Get Transcript” service. There are different levels of transcript detail available. The “Tax Return Transcript” is the most detailed. If you want an actual copy of your tax return from the IRS, you’ll need to download form 4506 from the IRS, fill it out and submit it, and wait up to 72 days. Be aware that the IRS charges $50 for each copy of your return.
How do I find my 1040 Schedule C if I used H&R Block?
You can get tax return copies when you sign in to your MyBlock account. Then find the “Your Taxes” link at the top-right of the screen in the Your Taxes section. Choose the year you want to see, then click “View My Tax Return.”
How do I find my 1040 Schedule C if I used TurboTax?
If you filed your taxes with a TurboTax CD/download product, your tax return is stored on your computer/tablet/laptop, so you can view or print a copy whenever you need to. If you used TurboTax Online, you can log in to your account and print copies of your tax return for free. TurboTax also has a detailed how-to on how to get a copy of your return from the IRS (be aware that the IRS charges $50 for each copy and it takes up to 72 days).
How do I find my 1040 Schedule C if I used TaxAct?
TaxAct Online provides the past 7 years of returns if you filed using TaxAct Online. To access your prior returns, simply sign into your TaxAct account, click the My Taxes tile, and scroll to the tax year you wish to access.
NOTE: TaxAct does not provide archived copies of returns filed through the TaxAct Desktop or TaxAct Professional Editions, but if you used one of these services the copy of your return should be stored on your computer. If you no longer have access or can’t find your saved return file and need a copy, you’ll need to order one from the IRS (be aware that the IRS charges $50 for each copy and it takes up to 72 days).
How do I find my 1040 Schedule C if I used TaxSlayer?
If you electronically filed your return with TaxSlayer you can view/print a copy of your return by logging in to your TaxSlayer account, and selecting the “Prior Year” tab on the “My Account” page. You will then need to click on “View or Print Return.”
How do I find my 1040 Schedule C if I used Jackson Hewitt?
Jackson Hewitt’s FAQs explain:
If your return was prepared at a Jackson Hewitt office that uses the Electronic Signature & Storage (ESS) system, you can print your tax return and other related tax documentation by following these steps:
- Join MyJH or Log In to MyJH.
- Click on Manage Documents.
- Click the ellipsis ••• to the right of the document you’d like to download.
- Select Download.
If you filed with Jackson Hewitt but DID NOT electronically sign your tax return, you can go to any office and show proper identification to obtain a copy.
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