Other Income You must report on your tax return all income you receive from your business unless it is excluded by law. In most cases, your business income will be in the form of cash, checks, and credit card charges. But business income can be in other forms, such as property or services. These and other types of income are explained next. Commissions, bonuses, and percentages.
Many direct sellers receive a commission on their sales or purchases.
Report the full amount of any commissions you receive as business income, even if you pay part of it to other direct sellers working under you. You can usually deduct the part you pay to others as a business expense. For more information, see Commissions under Other Expenses, later. Prizes, awards, and gifts. The following are examples of items that must be included in income.