Yes. You must report all your income on your tax return. You fill out Schedule C for self employment and pay SE tax on it in addition to the regular income tax on all your income. You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Premium or Self Employed version or use any of the Desktop CD/Download programs. All the Desktop programs have the same forms, so you can buy a lower version. You just get more help and guidance in the higher versions.