Yes, for purposes of eligibility of various programs you should always be reporting your net income (profit) from your business. This is the bottom line on your Schedule C that gets transferred to Form 1040, line 12.
Join me for a webinar February 28 - "How to Reduce Your Taxes for 2010 and 2011". For more info:
https://www.daycare.com/news/taxes/t...d-webinar.html