“For too long, people with disabilities have been relegated to the margins of society,” exclaimed Megan O’Neil, Access to Assets Project Coordinator at the World Institute on Disability (WID). “Asset-building programs give people the support, selfconfidence, and opportunity to become economically self-sufficient and truly integrated into society.”

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Microenterprise Taxation:  Understanding "Schedule C"
Almost all businesses (over 90%) start as a "sole proprietorship" or self-employed businesses by default. Unless a business has formally incorporated or entered into a partnership, it is a self-employed business, and its net income is subject to taxation through calculations performed on "Schedule C" (or C-EZ). Unlike an incorporated business, an unincorporated self-employed business is not a separate legal entity but simply an extension of the "individual" taxpayer. The business’s net profit (or loss) is transferred from Schedule C and added to wage and salary income (and any other sources) on the front page of the standard individual Form 1040. In 2002, 18.9 million taxpayers filed Schedule C. The vast majority of these had no employees (87%), 11.4 million had adjusted gross incomes (AGI) under $50,000; and 4.4 million self-employed businesses qualified for a tax refund through the Earned Income Tax Credit (EITC). That 4.4 million represents 20% of all EITC recipients (21.7 million in 2002).

Filing Schedule C is required by law if the business has a net profit over $400; this is true even if the taxpayer owes no income taxes. Because of the mandated role that Schedule C plays in the tax code, it is the single most important entry point for acknowledging and formalizing US microbusinesses. Incidentally, this means that Schedule C is also a logical portal for developing tax policies that deliver important microenterprise startup support through the tax code.

Filing Schedule C for the first time is a critical event for formalizing a new business. Since Schedule C is basically a 1-page profit and loss statement that every business needs to understand, it can also function as an annual tool for helping new owners understand their businesses’ finances. Unfortunately, most first-time self-employed filers, "informal" businesses, "unintentional" self-employed businesses and other low-income self-employed households, have limited options for finding help in tax preparation and tax planning.

Meet Maria: The case for taxes as a small business tool