Dear TaxChatter: is income really income if I didn’t receive a tax form that reports it to the IRS?

Dear TaxChatter: I earned $955 putting up Christmas lights on homes last year but I received no tax form showing the total amount I was paid - do I need to report this on my tax return?

Sincerely,

Lit up in Louisville

Dear Lit up in Louisville, if I had a dollar for every time I was asked if income had to be reported, well, you know the rest of that phrase.

Income is taxable no matter if it's reported on a tax form to you or not. Self employed individuals have a responsibility to keep accurate records that detail their income during the year. Self employed income is reported on Schedule C and you are allowed to deduct "ordinary & necessary" expenses against those earnings. Most people have expenses they can deduct when self employed - such as cell phone, internet, miles driven related to earning that income, etc. Income taxes are paid on net income (gross income less expenses) so make sure you account for out of pocket expenses incurred when reporting your income from this business, even when minimal.