Please help. I'm a single mother of two and full-time student, receiving pell grants and student loans. I worked as babysitter and housekeeper throughout the year. According to my best estimate, I earned roughly $7,000 in cash from friends and family which means I do not have a W2. I received some child support this year, but I don't believe I need to report that as income, correct? I am filing head of household. What's the best way to file taxes? Do my family and friends who have helped me with odd and end jobs have to give me receipts to file with my taxes? What kind of red flag do I need to avoid?

Do you have any income at all or a W2 from anywhere?

1. Any income you earned as babysitter or housekeeper is self employed income. Must be reported on tax return. You will report your income and expenses on schedule C or C-EZ (Form 1040). This income is subject to SE tax at 15.3%.
Read: Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor

2. Any help by friends and family, if not for service preformed, is gift. It is not taxable to you.

3. Child support is not income.
4. Student loan is not income.
5. If you are a degree student, Pell grant except for tuition and fees, books and equipment is taxable.

Very helpful. Thanks a million.

StudentMom:

File the Form 1040 with Schedules C and SE.

While you may show a paper profit that incurs a self-employment tax, with two children you will get a HUGE Earned Income Credit that will effectively pay the SE tax and get you a nice refund.

I can prepare your return rather quickly for a reasonable fee. Email me at [email protected].