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

Income — Business; Form 1040, Line 12 Workout

Business Income or Loss Information

Check Your Knowledge

Question 1 of 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