Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Mar 7, 2020 4:05:01 AM

How do I report the money I earned as a Rover pet sitter last year?

The money was transferred through PayPal but I am having a hard time getting documentation from PayPal as I do not meet their minimum requirements for a 1099K

0 1 403
1 Replies
Level 15
Mar 7, 2020 4:14:59 AM

You report the income from your own records. The IRS considers undocumented cash income (no W-2, 1099-K or 1099-MISC), for work performed, to be self employment income. Enter at "Business Income & Expenses" and TurboTax (TT) will complete Schedule C for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security & medicare tax) on any profits greater than $400.

You report the income from your own records, no matter how weak those records are and even if they consist of nothing more than your memory. If you plan to claim refundable credits (earned Income Credit, Additional Child Tax Credit),  based on this earned income, there's a chance of some kickback from the IRS. The self employed are expected to keep records. Getting paid by check is best. Direct  deposits or  cash payments in a bank account are common ways of creating a paper trail.