FAA6.N Examples : 26 Self-Employment Income (SEEI/SEEW) Examples : L Self-Employment Income and Expenses/Schedule C
Self-Employment Income and Expenses/Schedule C
Bob is self-employed and provides his Schedule C Profit or Loss From Business form. Bob reports that his income from gross receipts or sales is 12,000 for last year. Bob also states this amount accurately reflects his current monthly circumstances.
Bob has entered this amount on the Schedule C, Part I Income section, and line 1, gross receipts or sales. Bob reports that his only expense incurred is for gas for his lawnmower. Bob provides receipts for gas for the year.
Because Bob has a verified self-employment expense he is entitled to the 40% self-employment expense deduction.