 Looking at the income tax formula we're focused online one income remember in the first half of the income tax formula is in essence an Income statement, but just an outline of scaffolding other forms and schedules Flowing into these lines the schedule C being one of them it being in essence an income statement in and of itself income Minus expenses or business deductions the net income of which flows into line one income of our income tax formula here This is the first page of our form 1040 the schedule C net income would flow in then to The schedule one which would flow into page one line eight as we see on the form 1040 here This is the schedule C where we have profit or loss from business in essence an income statement with income and Expenses all right. Let's take a look at the general business credits Introduction your general business credit for the year Consists of your carry forward of business credits from prior year plus the total of your current year business credits So if there are any carry forwards, I would recommend just from a practical standpoint for a new client for example And generally if you're doing a schedule C in general that's gonna make the tax return more complicated So I would recommend putting the information into the prior year software Trying to mirror what is on the prior year tax return in that software so that you can roll forward the prior year Information and that's particularly useful when we have carryovers because that can help us the software can better Guide us hopefully with those carryovers in that process in that way So in addition your general business credit for the current year may be increased later by the carry back of business credits from Later years So if we're not able to get a benefit in the current year, the question is well Then can I carry it back to a prior year and or can I carry it forward to a future year to get a benefit and Attacks you other than the current year. So use a subtract this credit directly from your tax So credits different than deductions and that they're gonna be, you know dollar for dollar Benefit if you had a dollar verse credit versus a dollar deduction You would want the dollar credit generally because then you get the full dollar benefit of it Whereas a deduction will decrease your income which will result in a benefit based on your tax rates All right useful items. You may want to see form and instructions 3800 general business credit so you can dive into that on the iris website if you want to get into more detail 6251 Alternative minimum tax Individuals so you can find those on the irs website. All right business credits All the following credits are part of the general business credits the form you use to figure each credit is shown in Parentheses you will also have to complete form 3800 some credits have expiration dates check the instructions for each credit to make sure