Self-Employed but no 1099

[FreyaRose]

So I have 3 kids and to support them I clean houses. And I get cash. I think the amount I made this year was a little under $12,000. Would I still be eligible for the CTC if I don’t have a 1099?

[DoninGA · Accepted solution]

You do not need a Form 1099 to report your self-employment income.  You can enter it as cash income.

If your net self-employment income is $2,500 or more you are eligible for the Child Tax Credit on your tax return if you have entered a child under the age of 17 as a dependent.

[FreyaRose]

Thank you so much that’s all I needed to know ! 

[ThomasM125]

Yes, you may qualify for the child tax credit if you report self-employment income. You can report it even if you don't have a Form 1099-NEC, but you should have documentation supporting the receipt of the money. That could be in the form of bank deposits, client invoices or other relevant documentation. However, you will have to pay a self-employment tax on your net self-employment income that will approximate 15% of that amount.

[FreyaRose]

But what if it was just cash to hand transactions? Like I would clean 4-5 houses a week and the money was always in an envelope for me. How do I go about that? 

[MindyB]

You can (and must) report cash receipts. For tax purposes, you are self-employed, and will file a Schedule C. You are also able to deduct expenses from this work, such as cleaning supplies.

Here's how to report your cleaning business in TurboTax Online:

• Navigate to Federal > Wages & Income > Self-employment income and expenses > Start
• Answer "Yes" to the question "Did you have any self-employment income or expenses?"
• Give a description of the business, such as "Housecleaning" or a description of your choice
• Continue until the interview asks "how does your Cleaning services work fit into your big picture?", based on the information you provided, it's a side job and/or a business.
• Answer all the informational questions until you get to the screen  "Let's enter the income for your Cleaning services work."  Here, enter that you received common income- Other self-employed income, including cash and checks; then enter what you were paid.
• Once you've entered your income, type in your expenses in the proper categories, TurboTax Online will recommend popular categories, but refer to your records to ensure you are deducting all of your expenses