Business Income
What is Business Income?
Business income includes self-employment income you earned as a sole proprietor (not as part of a corporation or partnership). You report this income, as well as applicable expenses, on Schedule C.
Income reported to you on Form 1099-MISC - and only in boxes 5, 6, 7, or 14 - may also be considered business income, and you report business income on Schedule C. The IRS requires you to pay self-employment tax on business income.
More Information
- IRS Publication 334 - Tax Guide for Small Businesses
