Cash "under the table"

mazewanderer
Fri, 09 Mar 2012 11:53:40 +0000

Lerkin: You have to report all income. If the self employment income is less than $400, you do not have to pay self employment taxes, you still have to pay income tax

[Filing Requirements for Self-Employed Individuals](http://www.irs.gov/businesses/small/article/0,,id=115043,00.html)

So if she can reduce her income to less than $400 by showing expenses, she avoids the SE tax impact.