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Advanced Course > Income—Business

Income—Business

This lesson is designed to teach you how to report business income, including self-employment income, for taxpayers who are eligible to file Schedule C with limits.

Form 1040 is used to report income from a business or profession operated as a sole proprietor or independent contractor.

Click the Skills Workout button to learn more about business income.

Skill Check

Check your understanding of rules regarding business income. To check your answers, click the Check My Answers button at the bottom of the page.

  1. Tim works as an independent contractor for ABC Construction Company. The company sent Tim a Form 1099-MISC that shows he received $15,000 for the work he did for them. He also received cash payments of $4,000 from several different individuals for the work he completed. He did not receive Forms 1099-MISC for the $4,000.

    Tim must include the $4,000 cash payments as self-employment income along with the $15,000 on Form 1099-MISC.
  • A.
  • B.
  1. Schedule SE is not required unless net earnings exceed $400.
  • A.
  • B.