<prompt> Human: This is a repost...I was asked to change the title so that I would not come across as asking for help with tax evasion...Original Text: EDIT: I am not asking for help in breaking the law - quite the opposite!!Less than 30 minutes ago, I posted an inquiry about getting in trouble for making too many cash deposits, and some other crap... But the kindly subscribers of rpersonalfinance have helped to alleviate some of my worries.My only questions at this point are: Can I still claim these cash deposits when I file my 2014 taxes? Without having kept track of my cash deposits though Im sure theyre on my online bank statement, how can I claim that income? Roughly what is the tax on that or is that defined by the State in which I live?Thanks for suffering my ignorance a little longer.EDIT: If I claim these cash deposits approx. 4,600 for all of 2014, will my off-the-books employer get in trouble??Assistant: Its self employment earnings, sch c. You should get a 1099 but most likely wont because your employer is cheating taxes and cheating you. You will have to pay self employment and income taxes. But you can deduct any expenses you faced.Human: I file my taxes online, using Turbo Taxs walk-through system. Ive never had a job like this before, and have never had to claim income which wasnt on a W2. I believe there will be a segment regarding this self-employment income. My expenses were so few and so insignificant maybe 15-20 all together that I dont think itll be necessary to file for deductions. But you believe I should be safe to add this 4,600 to my tax claim and no one will be charged as a result? Im keeping this job, and as of Jan 1 Ill be on the books as an independent contractor. Id hate for my boss to get in trouble over this...But I also dont want to commit tax evasion.  <response>: First fill out Schedule C. If no business expenses, then your Schedule C result will be 4600. Then go to Schedule SE and use 4600 as your Schedule C result, to compute self-employment tax. This is the tax that your employer would split paying with you 5050 if you were a W2 employee, but as a contractor you pay it all.Then on your TurboTax or hand-filled 1040, you put your Schedule C income on line 12, your SE tax on line 57, and can deduct half of SE tax on line 27. If you have regular W2 income as well, that goes on line 7 as usual. Make sure if you have W2 income you also put in whatever amount has been withheld on line 64. Your independent contract work does not have withholding associated with it, because you just got paid cash.BTW: There are a few benefits to reporting all your income on your taxes. First, its legal. Second, by reporting your earned compensation you have a chance to set some of it aside in an IRA. Third, your Social Security checks in future depend on how much money they have recorded for you, so your SE tax info helps that data to be accurate. 