Freelance work (job was for personal use). got paid 5,000$ cash from that person-how do I, freelancer, claim it on taxes?
I did job for individual (he is not LLC, freelancer or any other business entity).
The job was for personal use (not for business or resale)...grass cutting, graphic design, whatever.
There is no definitive answer that i can find on internet about.
Best I can find: That individual DONT NEED TO issue 1099-NEC ..
.My questions are:
1. He does NOT NEED TO- BUT CAN HE issue that 1099-NEC? (SO i have a proof to IRS where i got that money from and he can deduct that sum on his taxes. Isnt it beneficial for him to issue that form)?
2. If answer is: IRS doesnt allow individual (not LLC, Not freelancer, not any business entity) to issue 1099-NEC (and he can not write off that payment on his taxes)
How do I, freelancer, claim that payment of 5,000$ to IRS...? (1040 ...other income..cash payment.).
how IRS will know it is legit money and where i got that money from (cash payment-no receipts) ???
Thanks
