When you earn money from side jobs like babysitting, mowing lawns and
shoveling snow, the IRS considers you self-employed—even though you
probably don't think of yourself that way.
You need to
report this income if it was more than $400.
Follow The Steps Below To Do So:
1.
Go
to the Federal Taxes tab and under Income and Expenses, choose Self-Employment.
2.
Click
Additional income.
3.
Enter
your cash payments. You can enter everything as a lump sum, or individually by
client.
4.
Continue
clicking through. The IRS requires that you list any expenses tied with your
income. Things that would count would be toys you bought for the children,
snacks you purchased for them, mileage that you drove to transport the
children, etc.
Note: The IRS wants to see good records to support
your claims. They prefer a contemporaneous record – one that you keep on a
day-to-day basis - though you can reconstruct one based on your calendar and
bank records. This is particularly true if you are claiming Earned Income
Credit or other credits based upon this income.
Hope This Was Helpful!
