Yes you will need to report this additional income on your tax return. Your going to find out that sometimes it doesn't pay to be an independent contractor. Your going to need to file Schedule C on your federal return and the "profit" is subject to Social Security and Medicare tax also known as FICA. You may also be subject to additional State taxes. In TurboTax you will need the business version (TurboTax will help) and follow the instructions during the interview. You will also want to get the Form1099MISC from the person who paid you. This will show how much you were paid. This amount needs to match what you report.
