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@nash123456 wrote:

One last question - we never got a 1099 but I'm still going to attach an explanation to my Federal return, - do I have to attach the same package to my State return too? Or leave it out? 


If you received no tax paperwork, then I would not attach any documents to your tax return, and don't mention the money at all, either federal or state.  Keep your documentation in case of audit for at least 3 years.  But if the income has not been reported to the IRS in the form of a 1099, there is no reason for you to attach a statement that will bring the issue to anyone's attention.