Q: Can you help with Schedule C
Recently I was made aware that we should amend our tax returns to add self employment income I made for which I was paid cash..which was about 2k per year..
Those work were random and not consistent so I don't have any license etc. for that...for example 1. I helped my friend to fix his laptop and he paid cash 2. I sold some scrap metal and got cash 3. Helped a neighbor fixed his lawn 4. Helped a family member to move stuff 5. Helped a friend fix his car etc......
Now questions.
1.On Schedule C it asks what is your 'Principal business or profession, including product or service'
What should I write here....? I know business code is 999999 but what exact words I should write to describe profession or service? can I write 'various activities - unable to classify.
2.I have no records on how much I made so can I put $2000 as approx. figure without any records ..
3.Same with expenses...can I leave it blank? because again I have no records..I heard IRS wants proof of expenses
A: Use your best estimate with respect to income and expenses to amend your tax returns and the schedule C. Put down “Service/Sales” and “Miscellaneous” for classification. The important thing is that you file the accurate tax returns and pay the accurate tax amount. Good luck. Zaher Fallahi, Tax Attorney, CPA.
Jennifer Louise Long agrees with this answer
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