Employees and independent contractors – Some taxpayers may be classified as independent contractors for federal purposes and as employees for California purposes. If the taxpayer is classified as an employee for California purposes, enter the amount reported as gross income of the business from federal Schedule C (Form 1040), Profit or Loss from Business, line 7, as wages on line 1a, column C.

← Line 1a through Line 1i and Line 1z d. Medicaid Waiver Payments Not Reported on Federal Form(s) W-2 →