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Hi, my name is Mark. I will be happy to help you with your questions.
How much money are you expected to make from tutoring?
The income would be reported on schedule C.
On schedule C you would report your business income and expenses. The net income would be subject to self-employment taxes. Essentially the net income would be taxed at a rate of 15.3% (FICA and Medicare).
The income would also be subject to income taxes.
I believe it is the $42. The $54 would have been the charge for a phone call consultation. I cannot see the charges on my end.
You would want to open a separate bank account for the business activity. This would keep track of all your deposits and expenses.
You also want to keep track of your mileage. You need to keep a log. You would be able to claim an automobile expense equal to $0.54 a mile.
I am not sure what you mean by be verified? Are you applying for financing?
Is this your first year of doing tutoring service?
That is fine. You would want to keep copy of the checks receive and a list of the payments receive. Something that would match up to your deposits. The log does not have to be anything elaborate. You could use a calendar and use it to write down your mileage. You should deduction every deduction that you are entitled to.
If you claim all of your deposits as income that is fine. You need to be sure to include any cash payments.
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