I want to be totally honest on my taxes but I'm not sure what to do in this instance. My MIL gave me $60-80 total (I can't remember which) last year to help her clean her house. She is 81 and needed help. I helped her sometimes for nothing, but a few times I accepted the money because she wanted me to have it. I spoke with My CPA, and he said this could be considered a "family gift", not income because I'm not in the "cleaning business" and I was just trying to help out my MIL and her giving me the money made her feel better. He said I could go either way--it was up to me--I could claim it or not claim it and he'd be fine with it. I am rather scrupulous and can't always see clearly, so I need some advice on what to do from people with "normal" consciences (neither lax nor scrupulous). What would you do?
You are being scrupulous.
Whatever you decide to do, not reporting would be tiny venial sin if the IRS required it. If it was a really large some of money, that may be different.
He would have to do some paper work to file the $80 and report that you had a business or that you were self employed and made $80. You would then be required to tell him your business's name. Then he has to ask if you had expenses in your business, such as travel expenses like gas, cleaning supplies, etc which would be deducted.
Think of the jerk saving himself tens of thousands of dollars by doing under the table cash business deals.
And you are not in business, it is just family helping each other out, so it is a family gift.
[quote="js_cat3391, post:3, topic:317135"]
it is a family gift.
Your CPA knows the tax law, and would have to answer for any advise he or she gave you.
I am also a CPA, and I would not claim it on my own taxes. I agree you are being scrupulous.
Okay, thank you all. I guess I was being scrupulous.