You have to report all income.
The side amount is still taxable income to you and yes, it should be reported.
You can report this as Misc Income or just add it as cash income on the Sch C you are filing. When you add it to a Sch C, and say it is $350, then you get a Qualified Business Deduction (QBI) of $70 (20% of $350), and if you already have the software the Sch C is the best place for it. However, it appears that you're now using the Turbo Tax online free edition, which does not have Schedule C.
You’re considered self-employed—even if it’s just something you do on the side, like drive for Uber, babysit, or blog.
Your taxes are handled differently than when you’re an employee of a company.
As a self-employed individual you:
- will pay self-employment tax (because income tax and Social Security aren’t deducted from your pay)
- will get a 1099-MISC or 1099-K (unless you only accept cash or personal checks)
- file a Schedule C, Form 1040 (this is how you report business expense or loss of income)
- can deduct money you spent on work-related expenses (like mileage, home office expenses, and mobile phone use)
- can estimate the taxes that are due and make quarterly estimated tax payments during the year
Get started by entering your income from self-employment. We’ll handle the rest, from creating the forms you need to reviewing work-related expenses that can help reduce your taxes.
Answers are correct to the best of my ability but do not constitute legal or tax advice.
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