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 Home &
Business version of TT. 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).
In TurboTax (TT), enter at:
- Federal Taxes tab
- Wages & Income
-
“I’ll choose what I work on” Button
Scroll down to:
-
Other Common Income
-Income from Form 1099-Misc
When asked why you got the 1099-Misc, select “Freelancer or Independent
contractor”
