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joemvp1
New Member

How do i report cash income from my small business?

All my income is in the form of cash, how do claim this at tax time

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1 Reply
Hal_Al
Level 15

How do i report cash income from my small business?

You report the income from your own records. The IRS considers undocumented cash income (no W-2 or 1099-MISC), for work performed, to be self employment income. Enter at "Business Income & Expenses" and TurboTax (TT) will complete Schedule C or C-EZ for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security) on any profits greater than $400.

You may have to upgrade to the Self Employment version of TT. If you have no expenses to deduct, There's a chance you may be able to use TT Deluxe or Premier. Enter your income at the 1099-Misc screen (even if you didn't get a 1099-misc). You do not need the payer's ("employer's") Employer ID Number (EIN).

In TurboTax (TT), enter at:
- Federal Taxes tab

 - Wages & Income

Scroll down to:

   - Other Common Income

      -Income from Form 1099-Misc

When asked why you got the 1099-Misc, select “Freelancer or Independent contractor”

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