unlicensed income

[Irina F]

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]

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

[MarilynG1]

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]