Question

Ryan is a self-employed house cleaner. He gets some clients through his own contacts, and also gets clients by referral through an agency. He receives payment through the agency for his agency referrals, and receives payment directly from his clients for his non-agency referrals. At the end of the year, the agency sent Ryan a Form 1099-MISC reporting $14,687 in box 3. He also received payments from three clients in the following amounts: Client 1: $397; Client 2: $570; Client 3: $3,786. None of these clients provided Ryan with a Form 1099-MISC. How much must Ryan report as gross receipts on his Schedule C?

$14,687

$17,843

$19,043

$19,440

Answer 1

Ryan is a self employed businessman. Internal revenue service schedule C is to be filed with personal income tax return. In form c gross receipts consists of everything that comes in. They include fees, commission, sales or any other income. In this case, all the income of Ryan will be part of schedule c gross receipts.

So amount reported under schedule c will be $ 14687+ $ 397 + $ 570 + $ 3786 = $ 19440