Year 1 (Most Recent)
Year 2 (Prior Year)
2-Year Summary
IRS Form
Sch C
Year 1 — Most Recent Tax Year
Profit or Loss From Business · Sole Proprietorship / 1099
1
Gross receipts or sales Total revenue before any deductions
$
2
Returns and allowances Refunds, credits given to customers
$
4
Cost of goods sold Direct costs to produce goods/services
$
Line 7 — Gross Profit
$120,000
8
Advertising
$
9
Car and truck expenses Business mileage / vehicle costs
$
10
Commissions and fees
$
11
Contract labor Subcontractors, 1099 workers paid
$
13
Depreciation ★ ADD-BACKNon-cash deduction — I add this back
$
14
Employee benefit programs
$
15
Insurance Business insurance premiums
$
16a
Mortgage interest — business property
$
17
Legal and professional services
$
18
Office expenses
$
20a
Rent or lease — vehicles/equipment
$
20b
Rent or lease — business property
$
22
Supplies
$
23
Taxes and licenses
$
24a
Travel
$
25
Utilities
$
30
Business use of home ★ ADD-BACKNon-cash expense — I add this back
$
28
Other expenses
$
Total Expenses (Line 28)
$0
Year 1 — Underwriting Analysis
Gross Revenue
—
Net Profit (Line 31)
—
UW Qualifying Income
—
Net profit (Schedule C Line 31)—
+ Depreciation add-back—
+ Business use of home add-back—
+ Mileage / vehicle add-back—
Total UW qualifying income—
Monthly qualifying income—
Underwriter's Note — Add-Backs
Items marked ★ ADD-BACK are non-cash expenses that reduce your taxable income but I add them back to your qualifying income. Depreciation, business use of home, and mileage are the most common. They lower your tax bill but they are not real cash outflows — so I give them back to you as qualifying income.
DISCLAIMER: This calculator is for educational purposes only and is modeled after the IRS Schedule C form structure. It does not constitute tax advice, accounting services, or a guarantee of mortgage approval. Actual qualifying income calculations vary by lender and loan program. Always consult a licensed CPA and mortgage professional for your specific situation.
Jennifer Heller | NMLS# 2375826 | The Everyday Underwriter, LLC | Equal Housing Lender
© 2026 The Everyday Underwriter MasterClass. All rights reserved. Reproduction prohibited without written permission.
Jennifer Heller | NMLS# 2375826 | The Everyday Underwriter, LLC | Equal Housing Lender
© 2026 The Everyday Underwriter MasterClass. All rights reserved. Reproduction prohibited without written permission.