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I have a friend trying to do taxes online and needs to know how he can file taxes on the cash he was paid doing house construction.

2007-01-08 07:19:40 · 2 answers · asked by urangel4life2006 1 in Business & Finance Taxes United States

2 answers

As a contractor, he should file a small business income form. It is pretty easy to do and provides a way to show the cash flow from such work. The downside is that he also needs to pay Social Security taxes on the money he made. But he can deduct business expenses for the job, such as new tools.

2007-01-08 07:23:57 · answer #1 · answered by Aggie80 5 · 0 0

The software he is using should have a question like:
Were you self employed? Did you have any self employment income?
Answer yes to this question, for business name and address put in his name and home address, and for amount, put in how much cash he received for the job. The software should take care of the rest.

2007-01-08 15:59:13 · answer #2 · answered by growing inside 5 · 0 0

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