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Do I need to report my earnings of $650 for repair services to a business?

I provided some repair services to a business. I do not have an established business name, account, etc. It was just a side job for a friend's business. Do I need to report and pay tax on this income? The company also indicated they will have more work for me this year - lets say another $400. Can I have them pay my wife who helps with the service to avoid paying taxes and getting a 1099? Thanks!

Public Comments

1. If at the end of the end of the tax filing period, you earn more than $ 7500, then yes. If you earn less than $ 7500 that year, I'd say no.
2. You must report it with or without a 1099. The lack of a 1099 just makes it easier to commit tax evasion it does not change the tax owed. You will report the income on IRS Form 1040 Schedule C and take any appropriate deductions for your expenses. The profit will be then entered on the 1040. You will also need to complete Schedule SE for self-employment tax. One-half the self-employment tax will be deducted from your AGI on the 1040. If all you have is these items then the return should be very easy. There is an EZ form of the Schedule C and a short form for Schedule SE and the instructions are actually fairly good. You just need to keep track of what you make and your expenses for the work.