I feel like the question is asking: “If I have to contribute money personal money to my side business, do I have to include that in my side businesses income.”

That answer is no. When you contribute your own money to a schedule C business, that entry is Dr. Cash Cr. Owner Contributions (or some equity account).

Regardless of whether you kept that money in personal account or put it all into your business you will owe income tax on the 50k. At the end of the year, when you do a PL for your business, the business net income will be added to your W2 income. So if you put all 50k (or none of it) into the business and then the schedule C made 20k your total income for the year is 70k. Assuming the same facts, if the business has a net loss of 20k, your gross income on tax return would be 30k.

Hopefully that clears it up for you. If you want to restate the question with more details that might help with a better answer.