Cash "under the table"

mazewanderer
Fri, 09 Mar 2012 11:46:11 +0000

Remember that there was some expense involved in earning the $400. For example if she had to drive to the couples house, she had to run errands like taking them to the grocery store, the mileage is deductible. If she had to buy some tools etc. those are all deductible.

If she can recreate some of the expenses, let us say $50, it reduces the income by that amount. Deduction for mileage is about 55 -c- per mile, if she drove a total of 100 miles that is $55.

So even if she earned $450, but she has over $50 in expenses, it comes below the $400 limit.