How do I report my cash wages with no W2 or paycheck stubs? 3 Answers as of April 26, 2011

In 2007 I worked what most people would consider "side jobs". I did not have steady work and worked for various people, who paid me in cash, with no paycheck stub/info or receipt. I have no W2s. And no records of earnings. How do I report this income on tax forms? Schedule c does not seem appropriate. Can I list it as wages earned without a W2? And how do I report the amount of income, it would only be an estimate from memory. What feeble records I did keep were lost when my comp crashed. I did not earn enough to require filing a federal return, but the state is demanding a return, based on my mortgage interest statement. I was not earning anywhere near what the state estimates. I was surviving and paying bills with proceeds from a refinance loan.

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Steven J. Fromm
Steven J. Fromm | Steven J. Fromm & Associates, P.C.
Under federal and most states, income is from whatever source derived. You should report this income on Schedule C so that you can offset such income with any business expenses you incur. In the alternative you can report it on Line 21 of the Form 1040.

In either event, remember this income is also subject to social security taxes that you must calculate using Schedule SE. This is often a big surprise tax for most taxpayers. As for recording keeping, you should go to your bank and get a record of all deposits of monies you received or go back to the employers to get an accurate amount of gross income. This is your burden as a taxpayer. With this info, you can reconstruct your tax picture for state purposes.
Answer Applies to: Pennsylvania
Replied: 4/26/2011
Meyer & Yee, LLP
Meyer & Yee, LLP | Kent W. Meyer
You would appear to have been a temporary employee. Estimate your income as best you can and declare it as wages. Do the same with the State. You wouldn't need to file a Federal return if under the limits. File a 540EZ for the State. Don't show the refi proceeds as income.
Answer Applies to: California
Replied: 4/26/2011
David Hoines Law
David Hoines Law | David Hoines
You have an obligation to keep accurate records of income or the government will make its own assessment report a good faith estimate.
Answer Applies to: Florida
Replied: 11/6/2010
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