http://www.etax.com <br /> <br />While most people are aware they must include wages as income on their tax returns, many don’t realize that they must also report cash earned from side jobs. <br />Generally, the IRS considers all income received in the form of money, property or services to be taxable income unless the law specifically provides an exemption. <br />It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income. <br />All income earned through the taxpayer’s business, as an independent contractor or from informal side jobs is self-employment income, which is fully taxable and must be reported on Form 1040. <br />Use Form 1040, Schedule C, Profit or Loss from Business, to report income and expenses. Taxpayers will also need to prepare Form 1040 Schedule SE for self-employment taxes if the net profit exceeds $400 for a year. Do not report this income on Form 1040 Line 21 as Other Income. <br />Independent contractors must report all income as taxable, even if it is less than $600. Even if the client does not issue a Form 1099-MISC, the income, whatever the amount, is still reportable by the taxpayer. <br />Fees received for babysitting, housecleaning and lawn cutting are all examples of taxable income, even if less than $600.
