i was self employed part of the yr. and was paid cash....can i claim the income w/o receipts? what about expenses? i don't have all of my receipts. how does this work?
2007-12-26 06:26:00 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
i did deposit some...but some i just spent for fuel and supplies, etc....when u claim it...will i be penalized? or should i ask my clients to go back & write out recepts for what i was paid?
2007-12-26 06:33:41 · update #1
Yes, you'll show your income from self-employment on a schedule C or C-EZ and also fill out a schedule SE. Your records of your income are enough to show the income. As far as expenses, you really need to have receipts, but if you have most of them but there are a few small ones you're missing you'd probably be OK. You should have detailed records though of both expenses and income.
2007-12-26 06:57:20 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
You report all of the income you made. What did you do with the cash? Did you at least deposit it immediately into a bank account? (You may or may not get 1099-Misc forms from all of your payers; regardless, you are expected to report all of the income.)
You can only deduct expenses that you have the receipts for that are necessary and ordinary for your type of work.
2007-12-26 06:30:53 · answer #2 · answered by Anonymous · 1⤊ 0⤋