Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Business; Form 1040, Line 12

Completing Schedule C-EZ

Part II: Figure Net Profit

Gross Receipts

Enter on line 1 the amount for gross receipts or sales. 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-EZ Instructions before completing this line.

Tip

Examples of statutory employees include full-time life insurance salespeople, certain agent or commission drivers, traveling salespeople, and certain homeworkers. The Statutory Employee checkbox in box 13 of the taxpayer's Form W-2 should be checked.

Tip

Many taxpayers erroneously report amounts from Form 1099-MISC with wages or other income. This income should instead be reported on Schedule C or C-EZ and on Schedule SE. If the income is reported incorrectly, the IRS may later issue a notice of proposed tax increase for the self-employment income and tax.

Form 1099-MISC
Form W-2

Form 1099-MISC

Form W-2