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If I regularly receive cash income for work that I do (in my case it is for private musical instruction), am I on the honor system for reporting this on my schedule C form?


How would the government know about this, even in an audit, unless I deposited checks into my checking account?

Because you're an honorable person who keeps records, which they would ask to see. A crook wouldn't keep the records, but we know that's not you. What kind of idiot would broadcast to the world that he's a thief?

What about if I receive a check for services, and instead of depositing the check into my account, I simply cashed the check at my bank?

No difference. It's still business receipts.

Phil Marti
VITA Volunteer
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