Self-employment Profit and Income

Self-employment profit is self-employment income minus self-employment expenses when self-employment income is greater than self-employment expenses.

Self-employment loss is self-employment income minus self-employment expenses when self-employment income is less than self-employment expenses.

Self-employed income is reported separately from wages, salaries, and tip income.

For a business owned by just one person, self-employment income and expenses are reported on Schedule C, Profit or Loss From Business.

All self-employment income must be included when computing self-employment profit or loss. The recipient of the services may complete Form 1099-NEC, Miscellaneous Income, and give it to the self-employed worker. The 1099-MISC is required when the payment from any one payer is $600 or more for a calendar year.