Introduction This chapter primarily explains business income and how to account for it on your tax return. It also explains what items are not considered income. If there is a connection between any income you receive and your business, the income is business income. A connection exists if it is clear that the payment of income would not have been made if you did not have the business. You can have business income even if you are not involved in the activity on a regular full-time basis. Income from work you do on the side in addition to your regular job can be business income. You report most business income, such as income from the sale of your products or services, on Schedule C or C-EZ. But you report the income from the sale of business assets, such as land and office buildings, on other forms instead of Schedule C or C-EZ. For information on selling business assets, see chapter 3. Nonemployee compensation. Business income includes amounts you received in your business that were properly shown on Forms 1099-MISC. This includes amounts reported as nonemployee compensation in box 7 of the form. You can find more information in the instructions on the back of the Form 1099-MISC you received.