What is Line 7 on Schedule C?
Line 7 — Gross income
Line 7 on Schedule C is your gross income from the business. It is calculated for you: start with gross receipts on Line 1, subtract returns and allowances on Line 2, subtract cost of goods sold on Line 4 to get gross profit on Line 5, then add any other business income on Line 6. Line 7 is the total your expenses are deducted from, so every deductible receipt you kept during the year reduces the profit calculated below it.
Examples
- A freelancer invoicing $60,000 with $500 in refunds shows $59,500 before expenses.
- An Etsy seller subtracts the cost of materials sold through cost of goods sold before reaching Line 7.
- A one-off referral bonus paid to the business is added as other income on Line 6.
Watch out for
- Line 7 is income before expenses — it is not the number you pay tax on.
- Only income from this business belongs here; wages and other personal income go elsewhere on your return.
- Keep 1099-NEC and 1099-K forms consistent with what you report on Line 1.
Full checklist for your trade
Stop guessing the category
DocuSpending reads each receipt and assigns the Schedule C category for you, then totals the year on demand.
General information, not tax advice. Amounts, limits, and percentages change between tax years — check the current IRS Schedule C instructions or ask a tax professional about your situation.
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