unlicensed income

Forum|Forum|2 years ago
March 13, 2024
2 replies
40 views

If I person worked without a license, which necessary for such work, must such person still report the earned income? Will the person be punished/ penalized for such "unlicensed" income it is reported in his tax return?

Bsch4477

Level 15

The IRS is only concerned about your reporting all of your income. They don’t concern themselves with licensing.

MarilynG

Alumni - Intuit

The IRS wants you to report all of your income, whether you are licensed or not.

If you're self-employed, you can also claim expenses against your income.

They are not concerned with local or state licensing requirements, so reporting the income on a tax return would not necessarily generate inquiries about licensing.

Your license fees are a deductible expense.

Here's more info on Reporting Self Employment Income.

@Irina F

[Edited 3/17/2024 | 4:06 pm]

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