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Part I: IncomeEnter gross receipts from the taxpayer's trade or business. Include amounts received in the trade or business that were properly shown on Forms 1099-MISC.
Be sure you probe to find out if the taxpayer received business income that was not reported on Form 1099-MISC. For example, tips received by self-employed hair stylists or manicurists are to be included in gross receipts on Schedule C-EZ/C. If the total amounts that were reported in Forms 1099-MISC, box 7, are more than the total that the taxpayer is reporting on line 1b, attach a statement explaining the difference. Statutory EmployeesIf the taxpayer received Form W-2 and the "Statutory employee" box 13 was checked, report the income and expenses related to that income on Schedule C or C-EZ. Enter the statutory employee income from Form W-2, box 1, on line 1c of Schedule C or C-EZ. Social security and Medicare taxes should have been withheld from the earnings; therefore, the taxpayer does not owe self-employment tax on these earnings. Statutory employees include full-time life insurance agents, certain agent or commission drivers, traveling salespersons, and certain home workers. Self-employment income and statutory employee income cannot be reported on the same Schedule C. The taxpayer must file two separate Schedules C. 
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Income — Business; Form 1040, Line 12
Completing Schedule C
Starting in tax year 2011, there are new lines in the Income section of Schedule C for merchant card and third party payments received. Line 1 now is 1a through 1d.Schedule C