Yes, you may combine the totals from both of these Items. Before you do so you should do two things:
- Make sure that the Box near the top of the 1099-Misc indicated a corrected form isn't checked. (please view screenshot below)
- Confirm that the sum of the two dollar amounts equals the Total Income received from this client in your books.
In most cases a business (Self-Employed or not) is going to have a Gross Income that is higher than the Total Income reported with a 1099-MISC. The IRS uses the reported income from 1099-MISC to cross-reference the income that a business is reporting in their Annual Income Tax Return. Since you don't file the 1099-MISC with your return if the income that you are reporting in Schedule C meets or exceeds the amount reported with 1099s you should not have any issues related to under-reporting income on your return.
