Courtney is a self-employed consultant (a business activity). This year her consulting activity generated $19,500 of revenue and incurred $1,500 in expenses. How does she report the revenue and deductions from the activity?

Revenue and expenses is recorded on Schedule C

Net income is recorded on front page (line 12) of her individual tax return

Explanation:

Courtney records the revenue of her consultancy or business activity as income and records the expenses of her consultancy or business activity for AGI on her Schedule C. She will record her net income given by the diffence between the revenue and expenses

Mathematically.

net income = revenue - expenses

net income = $ (19,500 - 1,500) = $ 18,000

Her net income of $ 18,000 from her consultancy or business activity is recorded on the front page (line 12) of her individual tax return