Net income from self-employment, reported on Line 31 of Schedule C or Line 3 of Schedule C-EZ, can be used for the Making Work Pay credit (it goes on line 2b of the worksheet in the instructions). If your 1099-MISC is required to be reported on Schedule C or Schedule C-EZ, then that income, less any deductions that you take related to the generation of that income, would be used.You must take all appropriate deductions against that income, however. Schedule C returns with no deductions taken against income are audit candidates.