I have a friend who has been working as an under-the-table agricultural worker. The grower pays cash and is also under the table and so there are no receipts or 1099s. Normally people in this situation don't claim this kind of income but my friend is tired of not qualifying for loans because it looks like she makes nothing on paper. Is it possible to claim this kind of income on her taxes? She can say how much she made and can pay taxes on that money but there is no paper trail. This isn't her only job. She has a few other on-paper jobs.
Thanks for your advice
That is self employment income.
You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version. Or use any of the Desktop CD/Download programs. You can see the Desktop programs here,
https://turbotax.intuit.com/personal-taxes/cd-download/
The Desktop programs have more features and advantages over the online version.
How to enter income from Self Employment
Or There is also The Turbo Tax Free File program which is free for federal and state. And has more forms than the Federal Free Edition, like Schedules A, B, C , D, E, F, EIC, H, K-1, SE, etc.
To qualify for the Free File website you just need to meet one of these 3 things.
AGI $39,000 or less.
Active duty military with AGI of $72,000 or less
OR qualify for EIC (earned income credit.)
In order to use the Free File program, you have to start it at a special website. Try signing in at the top right.
All income received, unless specifically excluded, must be reported.
So in the end, there is really no "under the table work".
Your friend can simply report this on a Schedule C with her form 1040. Whether an individual receives a 1099 or not, the income should be reported.
Keep in mind, that since the "employer" is not really handling this correctly, your friend will be subject to SE Tax on these earnings along with paying regular income tax.
That is self employment income.
You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version. Or use any of the Desktop CD/Download programs. You can see the Desktop programs here,
https://turbotax.intuit.com/personal-taxes/cd-download/
The Desktop programs have more features and advantages over the online version.
How to enter income from Self Employment
Or There is also The Turbo Tax Free File program which is free for federal and state. And has more forms than the Federal Free Edition, like Schedules A, B, C , D, E, F, EIC, H, K-1, SE, etc.
To qualify for the Free File website you just need to meet one of these 3 things.
AGI $39,000 or less.
Active duty military with AGI of $72,000 or less
OR qualify for EIC (earned income credit.)
In order to use the Free File program, you have to start it at a special website. Try signing in at the top right.