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New Member
posted Mar 13, 2021 9:19:05 AM

Can i file my income if i was paid in cash?

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2 Replies
Expert Alumni
Mar 13, 2021 9:38:51 AM

Yes, you can file an income tax return even if you were only paid in cash.

 

You will need TurboTax Self-Employed (or Home & Business) and will have to report the income on Schedule C. "Cash" income is subject to self-employment taxes, but using Schedule C will allow you to deduct any business-related expenses you incurred in earning the cash income.

 

You enter your income as General Income:

  • Business tab of Turbo Tax
  • Update next to Profit or Loss from Business (if you haven't started entering your business because you were "stuck" on the 1099-MISC issue, then go through the initial questions by adding a business)
  • Edit next to your business name
  • Start or Update next to Business Income
  • Start or Update next to General Income
  • Make up your own description under "Tell us about additional income for your XX business" and put the amount you were paid.

The description above will save on your worksheets, but the IRS only sees total income. You are required to claim all income whether you got a 1099MISC or not, but you are not required to list the source of every dollar.

Level 15
Mar 13, 2021 9:41:02 AM

There is also The Turbo Tax Free File program which is free for federal and state.  And has more forms than the Federal Free Edition, like Schedules A, B, C , D, E, F, EIC, H, K-1, SE,  etc.

 

To qualify for the Free File website  you just need to meet one of these 3 things.

AGI $39,000 or less.

Active duty military with AGI of $72,000 or less

OR qualify for EIC (earned income credit.)

 

In order to use the Free File program, you have to start it at a special website.  Click on Sign in at the top right.  It may let you continue your return so you don't have to start over.

https://freefile.intuit.com/