Taxes for under-the-table income (pay, interest, employment, money)

[HurrMark]

Earlier in 2008, I tutored someone once for a couple of weeks and was paid a very small amount doing so (less than $200). I am curious in terms of how to even report this on my 1040s. I know that self-employment income is supposed to be reported, but I do not have any 1099s or any other documents (other than PayPal, which is how I was paid). This doesn't sound like a lot, but who knows what the IRS can do, so I feel like I better pay up.

[Puddy4LyF]

:::whip sound:::

[evilnewbie]

Uhhh... 200 dollars? Who cares, why even bother... if the IRS comes after, give them $20 and tell them to leave you alone.... don't bother... you are freaking out over nothing... that's like me not reporting the one penny I made on a bank interest... who cares... stop being so paranoid... they don't really care...

[HurrMark]

Originally Posted by evilnewbie

Uhhh... 200 dollars? Who cares, why even bother... if the IRS comes after, give them $20 and tell them to leave you alone.... don't bother... you are freaking out over nothing... that's like me not reporting the one penny I made on a bank interest... who cares... stop being so paranoid... they don't really care...

Well, I know it's not much, and I realize it might sound paranoid. However, I know someone who babysat on the side and didn't pay taxes on them, and somehow, some way got caught by the IRS. It sounds pathetic, but I'm guilty of being the most honest guy in the land.

I didn't mention this, I am also asking because I am thinking of expanding my tutoring services this year (assuming people are willing to pay for them), and this might be more of an issue this year.

[tallrick]

Since it was paid by paypal, you may be smart to add the income to your 1040. If it was paid cash , I would say forget it. Whenever I did a job for cash the money went right into my fuel tank or for food, so I forgot about it.

[bale002]

If you had other income and your total exceeded the minimum threshold for reporting (I believe it is very low, like $450), then, strictly speaking, you should report it on a Schedule C, even pay FICA taxes on it.

If you have less than $5000 in self-employment income, then you can file a simplified (E-Z, as in easy, I believe) Schedule C.

Look up if there is a special code for tutoring.

Actually tutoring, in rich neighborhoods, could be a steady business in the years to come, since many of us who are literate will be reduced to providing services for the rich, while the rest of the down-trodden will be grinding it out in the trenches.

Good luck!

[GloryB]

I don't think it is enough money to even worry about....but you can read around on here for specific answers if you are concerned about it:
Publication 501 (2008), Exemptions, Standard Deduction, and Filing Information

[Pilgrim21784]

If the IRS bothered you about this you probably could make a nice piece of change on an article/newscast about how they are wasting their resources on trivia. It would be criminal (IMO) for them to waste the time and admin costs on this issue.

[wanneroo]

Wouldn't worry about it. I believe you have to have made over $400 to be reportable.

[IZthe411]

Yeah they have larger fish to fry, it would not be worth their time to chase after you.