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Yes, all income is taxable and if over $400 of self-employed income in the year, you must file a schedule SE and pay medicare and Social Security tax on it. You need the Self-employed edition for that schedule and schedule C.
Yes you can report it as self employment cash income. They might give you a 1099NEC if someone pays you 600 or more but you don't need to get a 1099NEC or 1099Misc.
You can include the other income as cash on your return and you will not need the 1099. To do so, follow the steps below.
Go into your account with Turbo Tax
Select Federal Taxes, then
Select Income and Wages, then
Scroll down and select, Self-Employment - Income & Expenses - Start
Say YES to Did you have Self Employment Income (if that screen comes up)
Then Tell Us The Type Of Self Employment Work You Do, here you can put in a description and Continue
The next screen will be Let's Get Income, here you will select 'Additional Income'. This is for cash income.
Then continue as you normally do with your return.
You will fill out a Schedule C to report self employment. You need a Net Profit of 400 or more to count as earned income and give you Social Security Credit.
You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version. Or use any of the Desktop CD/Download programs.
How to enter income from Self Employment
Some general info on self employment...........
You will need to keep good records. You may get a 1099NEC at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small. You might want to use Quicken or QuickBooks to keep track of your income and expenses.
There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed return....
http://quickbooks.intuit.com/self-employed
When you are self employed you are in business for yourself and the person or company that pays you is your customer or client.
To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. You will need to use the Online Self Employed version or any Desktop program but the Desktop Home & Business version will have the most help.
Here is some IRS reading material……
IRS information on Self Employment
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center
Pulication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf
Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf
You pay Self Employment tax on $400 or more of net profit from self-employment in addition to any regular income tax. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.
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