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Level 1
posted May 5, 2021 12:25:44 AM

Unexpected tip for a service meant as a gift/favor? A reciprocal gift?, Self-employed Income?,or ?

Not a mechanic, but helped a stranger in parking lot struggling to start their car. Later found they had tossed cash through an open window into my car. So, even though doing a favor (a gift?), suppose it might be interpreted as (unexpected) compensation  received for a service provided.
What do you think? Thanks!

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1 Best answer
Level 15
May 5, 2021 5:23:28 AM

That was a gift.  You do not report it or enter it on your tax return.

2 Replies
Level 15
May 5, 2021 5:23:28 AM

That was a gift.  You do not report it or enter it on your tax return.

Level 1
May 7, 2021 12:34:58 AM

Thanks for the assist!