Part I. Income

Except as otherwise provided in the Internal Revenue Code, gross income includes income from whatever source derived. In certain circumstances, however, gross income does not include extraterritorial income that is qualifying foreign trade income. Use Form 8873 to figure the extraterritorial income exclusion. Report it on Schedule C as explained in the Instructions for Form 8873.

If you were a debtor in a chapter 11 bankruptcy case during 2025, see Chapter 11 Bankruptcy Cases in the Instructions for Form 1040 (under Income ) and the Instructions for Schedule SE.

Be sure to report all income attributable to your trade or business from all sources. You may receive one or more Forms 1099 from people who are required to provide information to the IRS listing amounts that may be income you received as a result of your trade or business activities. The following is a list of some of the common Forms 1099.

1099-MISC. For more information about what is reported on Form 1099-MISC, see the Instructions for Recipient included on that form.

1099-NEC. For more information about what is reported on Form 1099-NEC, see the Instructions for Recipient included on that form.

1099-K. For more information about what is reported on Form 1099-K, see the Instructions for Payee included on that form and go to IRS.gov/Gig .

Income you report on Schedule C may be qualified business income and entitle you to a deduction on Form 1040 or 1040-SR, line 13a. See Forms 8995 and 8995-A for more information.