Originally Posted by TammyVA
Don't you have to have a W-2 or some type of document to send in?
I have 2 W-2's and some 1099, how would I handle what I've been paid by paypal with?
No, you don't have to have anything to send in.
You report income on Schedule C, which is to report profit/loss from a business.
You use Schedule SE for self-employment taxes.
I've been filing self-employed for quite some time now. I only have one contract that sends me 1099s, and that's for a company that I do about $5000 a year of work for. All my other clients don't send me 1099s for whatever reason, but I still have to report that income.
Whether we like it or not, money, especially money in bank accounts, received by PayPal, etc. is traceable, and if the IRS were to ever audit you for any reason at all, they'd want to know exactly where that money came from, and why you didn't report it, so it really is best to report it as what it is, business income.