| Well, if you had any expenses in connection with the income that you received on your 1099-Misc, then your Tax Adviser would suggest that you enter this information on Schedule C and deduct those expenses that were directly associated with the 1099-Misc income. Thus, you are effectively lowering your taxable income earned from the 1099-Misc income, resulting in a lower tax liability.
If on the other hand, there were no expenses related to this income, then you should include this 1099-Misc income on Form 1040 Page 1 Line 21, as Miscellaneous Income subject to self-employment taxes. Thus, subjecting you to a higher income tax on the 1099-Misc income earned, as this income is going be subject to both regular tax rate and S/E tax.
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