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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-MISC, 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.