<prompt> Human: Im currently a college student and I tutor on the weekends for 30hr, making between 550 and 650 a month depending on the month doing so. Ive heard from a friend that you can receive up to 13000 or something much larger than Im currently making a year from any individual as a gift tax free. I have not registered myself as a personal businesscompany and am paid by cash, check, or paypal. Could I consider my tutoring a favor and be receiving gifts from my clients? And I do apparently make enough to have to pay some taxes based on past years I work full time jobs over the summer, but it would obviously be much less if I didnt have to take into account my tutoring.  <response>: No. Youre performing a paid service, assuming thats what you were advertising to your clients. This is reportable as income. If youre doing this as a source of income, itll be much easier to just do it the way youre supposed to and not try to sneak around the rules for the rest of your life. 