Determine Whether Income is to Be Taxed

• Check with the IRS for the current tax year to see what their limitations are for income that needs to be taxed. The most recent limit was that if you made more than $4,000 in a year, you need to pay taxes on that amount. Income can be anything from babysitting money to gambling winnings and any other money that you take in during a year. Check with the IRS for the rules you need to follow as they are subject to change each year.
  
  

1099 Forms

• For many jobs which may not include a regular paycheck, you might be asked to fill out a W-9 form. This will allow the person you work for to submit to you a 1099 form with your income already totaled. With this form, you will simply follow along when filling out your tax forms and enter in those 1099 values when directed. Form 1099 do make it much simpler to add up your income; however, check the forms against your own totals to ensure they are correct.
  
  

Adding Income

• If you're not submitting W-9 forms to employers, keep track of your income and then claim it on your tax forms each year. You would simply include the total income as you might any other form of income. Keep records of your invoices and your totals so that you have proof of your income in case the IRS needs it at a later time.