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 report the income from your own records.
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.
On your 2017 tax return, you report only your income and expenses for 2017. If you have unreported income fro 2016, you file an amended 2016 return to report that income. If you did not file a 2016 return, then you can file a new return (instead of an amended one) now.
