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most of this information comes from the tax guide for small business for individuals who use Schedule C publication 334 tax year 2022 you can find on the IRS website irs.gov irs.gov looking at the income tax formula were focused on line one income remember in the first half of the income tax formula is in essence an income statement however just an outline the scaffolding other forms and schedules flowing into it for example the schedule C the business income which has its own income statement in essence income minus expenses or business deductions get into the net income flows into line one here of income of our income tax formula this is the first page of the form 1040 the schedule C would roll into the schedule one which would roll into line eight of the 1040. this is a Schedule C profit or loss from business in essence income statement with an income and expense part all right were continuing on with our discussions of accounting methods in general noting that the two major accou
