I completed one tax return in 2017 and got paid for it. How do I report this on my tax return. Can I report it as misc income? Thank you.

[Lisa995]

You need to clarify what you mean by "completed a return and were paid for it"  Someone paid you to prepare their tax return?

[hbl3973]

One caution: in states like California, you legally need to be registered/licensed/bonded/... to prepare tax returns for a fee.  (See <a rel="nofollow" target="_blank" href="https://ctec.org/Preparer/Questions/">https://ctec.org/Preparer/Questions/</a> for CA specifically.)

[fasteddie577]

Yes, I completed a tax return for my coworker and they paid me for it. Thanks. PS: My state is Texas

[Lisa995]

You didn't sign it as a paid preparer did you?

[fasteddie577]

I did not sign it. It was e-filed and I gave him a copy of the return, unsigned. Thanks

[SweetieJean]

Sounds like your coworker gave you a cash gift.

[fasteddie577]

Thanks SweetieJean

[hbl3973]

Also, if it makes you feel more comfortable to go the Schedule C route, you should go ahead and get a free PTIN from the IRS via

     <a rel="nofollow" target="_blank" href="https://www.irs.gov/tax-professionals/ptin-top-faq-3">https://www.irs.gov/tax-professionals/ptin-top...>

Texas itself has no fees/license/certification requirements for tax preparation.

[fasteddie577]

Thanks again.

[LeeM · Accepted solution]

You would need to report that on a Schedule C, Profit or Loss from Business. You would then report all income and any expenses used to generate that income. 

IF your net income is less than $400, then you will not owe Self-Employment tax on it.

You can find more information on how to enter that Schedule C below:

https://ttlc.intuit.com/replies/3302122

[fasteddie577]

Thank you. Greatly appreciated.