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How Do You Report Income Received for Renovating a Home?

In 2022, I worked to renovate my grandmother's house to get it ready to sell. My aunt, who did not live in the house, paid me for the work using a cashier's check from my grandmother's account. I charged for the reimbursement of the materials and also charged a significant amount for labor. I'm wondering if I need to report this as self-employment income (it would be great if I could in order to help boost overall income for the Additional Child Tax Credit). I temporarily paused my other self-employed position to complete this work for part of 2022 - in other words, this work took away earning opportunities from my main self-employed role.

If I can't or shouldn't report this income as self-employment income, where should it be reported, or does it need to be reported at all? 

Thanks for your assistance!
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2 Replies

How Do You Report Income Received for Renovating a Home?

You must file a tax return if you have net earnings from self-employment of $400 or more from gig work, even if it's a side job, part-time or temporary.

you file schedule C. 

 

you are confused about this

(it would be great if I could in order to help boost overall income for the Additional Child Tax Credit)

it's not her income to report it's yours. I see no way this would increase her income nor do anything else that would increase the credit. 

How Do You Report Income Received for Renovating a Home?

Thank you for the reply, Mike9241!

 

It seems that the late hour at which I posted my question caused me to ask it poorly. 

 

I have other self-employment income from freelance writing work and freelance audio-visual work done during 2022. My wife also has a small amount of W-2 income, so we definitely have to file taxes.

 

Regarding boosting income - the AGI for my wife and I is below the point that maximizes the Additional Child Tax Credit. Using the IRS formula, our income isn't high enough above the base $2,500 to maximize the $1,500 refundable portion of the Additional Child Tax Credit for our three children. Therefore, adding the money I was paid to renovate my grandmother's house as self-employment income increases our overall tax refund.

 

What I was really wondering was if income earned from renovating a relative's house counted as self-employment income, or if I need to report it on my return under miscellaneous income, hobby income, or something else. Thank you so much!

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