Question

I get paid cash of 5000.00 with no 1099 and no proof of income.

Forum|Forum|7 years ago
June 4, 2019
2 replies
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TurboTax Deluxe Online

Employee

The IRS considers undocumented cash income (no W-2 or 1099-MISC), for work performed, to be self employment income. Enter at "Business Income & Expenses" and TurboTax (TT) will complete Schedule C or C-EZ for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security) on any profits greater than $400.

You may have to upgrade to the Home & Business version of TT. There's a chance you may be able to use TT Deluxe or Premier. Enter your income at the 1099-Misc screen (even if you didn't get a 1099-misc).

In TurboTax (TT), enter at:
- Federal Taxes tab

- Wages & Income

- “I’ll choose what I work on” Button

Scroll down to:

- Other Common Income

-Income from Form 1099-Misc

When asked why you got the 1099-Misc, select “Freelancer or Independent contractor”

You claim the income from your own accounting records. you don't need any proof to file your tax return. If ever audited, you will then need proof. Bank deposit records are a good source of proof.

N

nat_

I was told by a live agent to put cash income in "other income". Is this incorrect? I was self employed only paid cash no 1099.

VolvoGirl

Employee

Depends. It should be on schedule C as self employment income which goes to Schedule 1 line 3. Or did it show up on Schedule 1 line 8 Other Income?

T

Tqgrl78

Depending on what type of work also I claim income has a Household Employee which ranges from all kinds of work that you do for the home inside and out even running errands. Only if I make more $1900 in cash wages from the same individual than you have to pay Social Security and Medicare taxes. If you make $750 or more in a calendar quarter for the year from a single individual than you will have to pay taxes Each year the amount changes.

VolvoGirl

Employee

@Tqgrl78 I think you have that wrong. If the person pays you 1900 or more they should pay you as a household employee and take out ss and medicare and give you a W2. I might have that wrong about the $1900, it might be less than $1,900. You get SS credit for any quarter you make $750.

If you don't get a W2 from the person paying you then you have to file it as self employment income with no minimum. You will pay SS & Medicare tax on any self employment income of $400 or more in addition to any regular income tax on it.

X

xmasbaby0

Employee

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/considered-household-employee/L8WWhbPfO_US_en_US?uid=lrtjhxqc

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-payments/pay-taxes-pay-household-employee/L9eZxdOGo_US_en_US?uid=lrtjjefi

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**