If you want to be legal you need to claim it all. But, it doesn��t mean you have to get taxed on all of it.Good record keeping of expenses that can be deducted against the job as well as fixed overhead determines NPBT, net profit before taxes. As a business owner, we do not have positive net profit until we exceed 1.5 million in sales.So, it is not the price of the job itself, but the overall variable cost of the job itself combined with your fixed overhead.As for cash, the IRS will expect you to honestly report and pay taxes on it as if it were any other compensation.Good Luck.Terms of use: Offer of assistance is basic advice and not to be construed to be providing legal or accounting advice. You must see a qualified professional for advice for your specific situation.
If you made over $400 in a year, you have to file taxes. It doesn t matter if you were paid in cash or check, the money needs to be claimed. As the other person said, if you claim expenses that reduces your taxable earnings.Also, you may think that you can get away without paying taxes. But unless you never buy any big ticket item, eventually almost everyone gets cost. When you do you will have to pay what you owe plus penalties.
Yes, anything more than $400 in one year needs to be taxed.
