The IRS says that miscellaneous income is anything received in exchange for goods or services. This includes awards, prizes, contest winning, and etc.
As a tax preparer I see a lot of "self-employed" tax payers that are having a hard time with the IRS. Some clients I meet because other tax firms refuse to process their tax return due to lack of paperwork.
Fathers, when was the last time that you gave the mother of your child a receipt for cleaning the house or washing your uniform? I know, NEVER!
Women enjoy being stay at home moms, great girlfriends, special daughters, and the list goes on. What about the watch you buy your mom for Mother's Day? Did she not provide a great service to be deserving of that watch? Has mom committed fraud if she doesn't file a form Schedule C???
The lines are definitely blurry when it comes to the IRS and tax laws. However, inside the envelope of countless forms that you must fill out after the IRS decides to audit you there is no box to check if you were simply confused by "blurry lines".
http://www.jts-tax-service.com/
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