 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, we're focused on line one income. Remember in the first half of the income tax formula is in assets and income statement, but just an outline, other forms and schedules flowing into these line items. One of those, the Schedule C having business income minus business expenses, gives us in essence the net business income that flows in from the Schedule C to line one income of our income tax formula. Page one of the form 1040, we note that the Schedule C flows into the Schedule One, which flows into the first page of the form 1040, line number eight. The Schedule C is the profit or loss from business. It has two parts or it has an income statement structure, income.