What Counts as Business Income?
Business income is income you earned because you owned and operated a business. The IRS explains business income this way: "If there is a connection between any income you receive and your business, the income is business income. A connection exists if it is clear that the payment of income would not have been made if you did not have the business." (Publication 334)
Business income includes:
Income received for services rendered as an independent contractor, freelancer, or other non-employee position;
Income received for manufacturing or selling merchandise;
Income received from government contracts;
Fair market value of property or services received through bartering.