Resources for Part II: Figure Net Profit

Refer to Publication 4012, Schedule C Business Income in Tab D, Income.

• 1. Gross Receipts: If this income was reported to the taxpayer on Form W-2 and the "Statutory Employee" box on that form is checked, see Schedule C Instructions before completing this line.
• Any Form 1099-NEC with nonemployee compensation (box 1) for a trade or business must be entered on line 1 by linking to Form 1099-NEC. See Pub 4012 job aid on Schedule C Business Income for guidance.
• 2. Total Expenses Refer to the Volunteer Resource Guide, Tab D, Income, for guidance on entering expenses on Schedule C. The tax software will total all the expenses and transfer the amount to line 2.