how do i file income tax to get earned income credit on cash money that i didnt keep track of?

Question

single mother with one child. kept children for cash.

Answer 1

It would serve you well to seek the advice of a bookkeeper, or tax pro. Since you are self-employed (1040 w/sched C), you are required to do bookkeeping and have records that the IRS can see the day you file your taxes.

www.irs.gov, business, record keeping

good luck & bless

Answer 2

Estimate your cash earnings as best you can. You can back into what your cash earnings were by looking at what your bills are, and the source of money to pay those bills.

Use that estimate on a Schedule C. The net after expenses is the number that is used for the EIC.

Your EIC will be reduced because you have to pay about 15% of your net cash earnings for Social Security and Medicare. But you will get a refund if your cash earnings are in the range for the EIC.

Commercial preparers do this all the time. You may want to use a commercial preparer and then if your situation is the same next year, you can do it yourself. And of course, keep a record of your earnings.