The IRS divides the Schedule C into five parts. Each section reports important information about your income and deductions.
This is an example of the program. Below that is the explanation for each entry box.
Schedule C allows for multiple income allocation types when reporting your earnings.
Gross Income- Income recognized from services provided. (Amounts reported from Form 1099-K or in box 7 of your 1099-Misc will carry to your Schedule C as Gross Income). Pulled to Part I, Line 1.
Statutory Employee Income- Income reported via W-2 for work you performed as a statutory employee. You can read more about who is classified as a statutory employee here. Pulled to Part I, Line 1.
Returns and Allowances- Amount of credit or allowances you provided customers for returned products. This also includes amounts you discounted from the fair market value of your services or product. Amounts entered as Returns and Allowances will directly reduce the amount of income subject to Self-Employment tax. Pulled to Part I, Line 2.
Other Income- Income that is derived from business activity but does not fit any of the categories mentioned above. This can include income such as compensation from punitive damages, insurance payments for lost income, and certain kickbacks. Pulled to Part I, Line 6.
This information is carried to the Schedule C Part I: