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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 967
Experience:  Certified Public Accountant
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I am a tutor and get paid daily, usually in cash, sometimes

Customer Question

i am a tutor and get paid daily, usually in cash, sometimes personal check. what do i need to do to files taxes next year? how can my income be verified?
Submitted: 4 months ago.
Category: Tax
Expert:  Mark Taylor replied 4 months ago.

Hi, my name is Mark. I will be happy to help you with your questions.

Expert:  Mark Taylor replied 4 months ago.

How much money are you expected to make from tutoring?

Customer: replied 4 months ago.
it varies WIDELY. i dont charge a fee for cancelling. i charge most families different amounts and they dont have to commit to more than one week at a time
Expert:  Mark Taylor replied 4 months ago.

The income would be reported on schedule C.

Expert:  Mark Taylor replied 4 months ago.

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).

Expert:  Mark Taylor replied 4 months ago.

The income would also be subject to income taxes.

Customer: replied 4 months ago.
new to this site.... are u charging me $42 or $54? or both?
Customer: replied 4 months ago.
how can it be verified besides the deposits i make into the account?
Expert:  Mark Taylor replied 4 months ago.

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.

Expert:  Mark Taylor replied 4 months ago.

You would want to open a separate bank account for the business activity. This would keep track of all your deposits and expenses.

Expert:  Mark Taylor replied 4 months ago.

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.

Expert:  Mark Taylor replied 4 months ago.

I am not sure what you mean by be verified? Are you applying for financing?

Expert:  Mark Taylor replied 4 months ago.

Is this your first year of doing tutoring service?

Customer: replied 4 months ago.
nope. and i dont keep any records.(no record of income, no record of expenses) i dont really want to keep a log of anything, im lazy. what if i just claim my bank deposits as my income
Expert:  Mark Taylor replied 4 months ago.

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.

Expert:  Mark Taylor replied 4 months ago.

If you claim all of your deposits as income that is fine. You need to be sure to include any cash payments.

Expert:  Mark Taylor replied 4 months ago.

I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today

Expert:  Mark Taylor replied 4 months ago.

Please let me know if you have any more questions or need clarification.