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IRS.gov Website
Instructions for Schedule C (Form 1040)
taxmap/instr/i1040sc-010.htm#en_us_publink24329wd0e874

Line I(p5)

For Use in Tax Year 2013
rule
If you made any payment in 2013 that would require you to file any Forms 1099, check the Yes box. Otherwise, check the No box.
You may have to file information returns for wages paid to employees, certain payments of fees and other nonemployee compensation, interest, rents, royalties, real estate transactions, annuities, and pensions. You may also have to file an information return if you sold $5,000 or more of consumer products to a person on a buy-sell, deposit-commission, or other similar basis for resale.
taxtip
The Guide to Information Returns in the 2013 General Instructions for Certain Information Returns identifies which Forms 1099 must be filed, the amounts to report, and the due dates for the required Forms 1099.
taxmap/instr/i1040sc-010.htm#en_us_publink24329wd0e897

Part I. Income(p5)

For Use in Tax Year 2013
rule
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 2013, see Chapter 11 Bankruptcy Cases in the Instructions for Form 1040 (under Income) and the Instructions for Schedule SE (Form 1040).
taxmap/instr/i1040sc-010.htm#en_us_publink24329wd0e924

Line 1(p5)

For Use in Tax Year 2013
rule
Enter gross receipts from your trade or business. Include amounts you received in your trade or business that were properly shown on Forms 1099-MISC. If the total amounts that were reported in box 7 of Forms 1099-MISC are more than the total you are reporting on line 1, attach a statement explaining the difference.
taxmap/instr/i1040sc-010.htm#en_us_publink24329wd0e942
Statutory employees.(p5)
For Use in Tax Year 2013
rule
If you received a Form W-2 and the "Statutory employee" box in box 13 of that form was checked, report your income and expenses related to that income on Schedule C or C-EZ. Enter your statutory employee income from box 1 of Form W-2 on line 1 of Schedule C or C-EZ and check the box on that line. Social security and Medicare tax should have been withheld from your earnings; as a result, you do not owe self-employment tax on these earnings. Statutory employees include full-time life insurance agents, certain agent or commission drivers and traveling salespersons, and certain homeworkers.
If you had both self-employment income and statutory employee income, you must file two Schedules C. You cannot use Schedule C-EZ or combine these amounts on a single Schedule C.
caution
Qualified joint ventures should report rental real estate income not subject to self-employment tax on Schedule E. See Qualified Joint Venture, earlier, and the Instructions for Schedule E.
taxmap/instr/i1040sc-010.htm#en_us_publink24329wd0e976
Installment sales.(p5)
For Use in Tax Year 2013
rule
Generally, the installment method cannot be used to report income from the sale of (a) personal property regularly sold under the installment method, or (b) real property held for resale to customers. But the installment method can be used to report income from sales of certain residential lots and timeshares if you elect to pay interest on the tax due on that income after the year of sale. See section 453(l)(2)(B) for details. If you make this election, include the interest in the total on Form 1040, line 60. Check box c and enter the amount of interest and 453(l)(3) on the line next to that box.
If you use the installment method, attach a statement to your return. Show separately for 2013 and the 3 preceding years: gross sales, cost of goods sold, gross profit, percentage of gross profit to gross sales, amounts collected, and gross profit on amounts collected.
taxmap/instr/i1040sc-010.htm#en_us_publink24329wd0e1019

Line 6(p5)

For Use in Tax Year 2013
rule
Report on line 6 amounts from finance reserve income, scrap sales, bad debts you recovered, interest (such as on notes and accounts receivable), state gasoline or fuel tax refunds you received in 2013, the amount of credit for biofuel claimed on line 2 of Form 6478, the amount of credit for biodiesel and renewable diesel fuels claimed on line 8 of Form 8864, credit for federal tax paid on fuels claimed on your 2012 Form 1040, prizes and awards related to your trade or business, and other kinds of miscellaneous business income. Include amounts you received in your trade or business as shown on Form 1099-PATR.
If the business use percentage of any listed property (defined in Line 13, later) dropped to 50% or less in 2013, report on this line any recapture of excess depreciation, including any section 179 expense deduction. Use Part IV of Form 4797 to figure the recapture. Also, if the business use percentage drops to 50% or less on leased listed property (other than a vehicle), include on this line any inclusion amount. See chapter 5 of Pub. 946 to figure the amount.