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

posted

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”