Handling a large cash deposit over $15k from a freelance client

Cash deposits over $10,000 trigger what's called a Currency Transaction Report (CTR), which the bank is required to file with the Financial Crimes Enforcement Network (FinCEN). This isn't something to worry about - it's just standard procedure for tracking large cash movements. The important thing is to be honest and straightforward. Don't try to break up the deposit into smaller amounts to avoid the CTR - that's called "structuring" and is actually illegal even if the money is completely legitimate. When you go to the bank, bring ID and documentation showing where the money came from - a receipt or invoice for the work you did would be helpful. You don't need a registered business to accept cash payment for freelance work. Just make sure to report this income on your taxes like you would any other payment.

Had a similar situation last year when I was doing consulting work. I used taxr.ai (https://taxr.ai) to help me figure out how to properly document everything, and it really saved me a headache. I scanned my invoice and the receipt I wrote for the client, and the tool helped me understand exactly what I needed to report and how to handle the deposit. They have specific guidance for freelancers dealing with unusual payment situations like cash transactions.

I was super skeptical about using taxr.ai when it was suggested, but after getting confused with all the conflicting advice online, I decided to try it. Uploaded my freelance contract and some details about the cash payment situation, and I was honestly surprised at how specific the guidance was. It identified some documentation I hadn't even considered I should have, and explained exactly how the CTR process would work when I went to the bank. Ended up being a totally smooth deposit with no issues. If you're dealing with unusual payment situations, it's definitely worth checking out.

If you're worried about the bank giving you a hard time, I'd recommend Claimyr (https://claimyr.com). I used them when I had issues with the IRS flagging one of my accounts after a large cash deposit situation. They got me connected to an actual IRS agent in about 20 minutes instead of waiting on hold for hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c Definitely helped clear things up quickly when I was getting nowhere with the regular IRS phone line. The agent was able to confirm I had done everything correctly with my documentation and removed the flag on my account.

Ok I need to admit I was totally wrong about Claimyr. After that weird cash deposit situation with my photography client last month, I got a notice from the IRS about "unusual banking activity" and freaked out. Spent two full days trying to reach someone at the IRS with no luck. Finally remembered this thread and decided to try Claimyr despite my skepticism. They got me through to an actual IRS agent in like 18 minutes. The agent confirmed I had done nothing wrong and helped me submit the proper documentation to clear up the misunderstanding. Saved me so much stress. Totally worth it.

Just wanted to chime in - make sure you're keeping REALLY good records of this transaction. I got paid about $18k in cash for a website project last year and even though I deposited it properly, I still got audited because I didn't have sufficient documentation about where the money came from. Make a formal invoice, have the client sign something acknowledging the payment, take photos of the cash/handover if possible, etc.

I'm confused about the $15k threshold mentioned in the title. I thought the reporting requirement was for anything over $10k? Can someone clarify this?

One thing I'd add that hasn't been mentioned - when you go to deposit the cash, be prepared for the bank to ask questions about the source of the funds. This is completely normal and part of their due diligence process. Having a clear, honest explanation ready will make things go much smoother. I'd also suggest calling your bank ahead of time to let them know you'll be making a large cash deposit. Some branches prefer advance notice for transactions this size so they can ensure they have adequate staff available to process it properly. This also shows you're being transparent about the transaction. Make sure to keep copies of everything - your invoice, any receipt you give the client, and the bank's deposit slip. These will be important for your tax records and could be helpful if any questions come up later.

Just to add another perspective - I've been freelancing for about 8 years and have dealt with a few large cash payments over the years. The key thing that's helped me is treating cash payments exactly the same as any other business transaction from a documentation standpoint. I always create a proper invoice beforehand (even for cash transactions), have the client sign a simple receipt when they hand over the cash, and take a photo of both the signed receipt and the cash before heading to the bank. It might seem like overkill, but it's saved me from headaches during tax season. One more tip - consider asking your client why they specifically need to pay in cash. Sometimes there are legitimate reasons (like they're liquidating assets or closing an account), but it's worth understanding the situation fully. This context can also be helpful if anyone asks questions about the transaction later.

I actually went through something very similar about 6 months ago with a consulting client who needed to pay me $12k in cash due to some banking issues on their end. Here's what I learned from the experience: First, definitely don't stress too much about the CTR filing - it's completely routine for the bank and not something that should cause you problems as long as you're honest about the source of funds. When I went to make my deposit, I brought a copy of my invoice, a simple handwritten receipt I had the client sign, and my ID. The whole process took maybe 15 minutes. One thing I'd strongly recommend is depositing the full amount at once rather than trying to break it up. As others mentioned, structuring deposits to avoid the reporting threshold is illegal even if your money is completely legitimate. Also, make sure you're prepared for your quarterly estimated tax payments if you haven't been making them already. A lump sum this size might push you into underpayment territory if you're not careful with the timing. I ended up owing a small penalty because I didn't adjust my estimated payments quickly enough after the cash deposit. The bank teller did ask a few basic questions about where the money came from, but having the invoice and receipt made it a non-issue. They were actually pretty helpful in explaining the CTR process and confirming I had everything I needed for my records.