How to report additional income from Cash App personal account for taxes?

You're right to be concerned about reporting this income, but it's actually pretty straightforward! Since you've earned income through Cash App without receiving a 1099-K, you'll need to self-report this as income. The best way to handle this is to report it on Schedule C (Profit or Loss from Business) if it's from self-employment activities like your artwork sales and side gigs. This allows you to not only report the income but also deduct any legitimate business expenses you had related to earning that money, which can reduce your tax liability. Make sure to keep your own records - screenshots of Cash App transactions, a spreadsheet tracking payments, etc. Even without a 1099, you should maintain your own documentation in case of questions later.

I was in EXACTLY this situation last year with about $4,200 in Cash App payments from my photography side hustle. I spent hours trying to figure it out and was so stressed about potential audits. Then I found this AI tax assistant at https://taxr.ai that completely saved me. You upload your Cash App transaction history and it automatically categorizes everything as business income, personal transfers, or reimbursements. It then creates a perfect Schedule C with all your transactions organized. I was able to properly document everything, claim the right deductions, and file with confidence. Their system even spotted some deductions I would have missed!

Just wanted to update everyone - I decided to try that https://taxr.ai service after being super skeptical about it. Honestly, it was a game changer for my situation! I had a mix of legitimate business income and personal transfers on Cash App that I was completely confused about. The system sorted everything perfectly and even identified several deductions related to my side gig I hadn't considered. It created a really clean Schedule C that clearly separated my actual business income from personal transfers. I'm actually getting a slightly larger refund than expected because it helped me identify some legit business expenses! Super glad I took the leap and tried it.

If you're also stressing about potentially getting audited and need to talk to someone at the IRS about your specific situation, good luck with that! I spent 3 WEEKS trying to get through to a human at the IRS last month about a similar issue with unreported income. After being on hold for hours and getting disconnected repeatedly, I found https://claimyr.com which was a total lifesaver. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c but basically they wait on hold with the IRS for you and then call you when they get a human on the line. I was able to speak directly with an IRS agent who explained exactly how to handle my Cash App income situation, and they confirmed I was doing it correctly. Totally worth it for the peace of mind alone!

I need to eat my words from my skeptical comment above. After struggling to get through to the IRS for days after posting that comment (disconnected 4 times after waiting on hold for 1+ hours each time), I broke down and tried Claimyr. The service actually worked exactly as described. They got through to an IRS agent in about 3 hours, and I got a call connecting me directly. The agent I spoke with was super helpful about my Cash App income situation. She walked me through exactly how to report it on Schedule C, what documentation to keep, and even explained which expenses would qualify as deductions for my particular side gig. I'm shocked to say it was worth every penny just for the time saved and anxiety reduced.

Another option nobody mentioned - you could also report this on Schedule 1, Line 8 as "Other Income" instead of Schedule C if you don't consider it a business. The downside is you can't claim business expenses to offset the income. But it's simpler if you don't have many expenses.

Has anyone used Cash App's tax reporting features? I know they have some built-in tools for business accounts but idk if those help with personal accounts too?

Just to add another perspective - I was in a similar boat last year with about $2,800 from freelance graphic design work through Cash App. I ended up going the Schedule C route and it was definitely the right choice. Even though it seemed more complicated at first, I was able to deduct things like my Adobe subscription, art supplies, and even a portion of my home internet bill since I work from home. Those deductions saved me way more than I would have saved by just reporting it as "other income" on Schedule 1. The key thing that helped me was keeping really detailed records throughout the year - I created a simple spreadsheet tracking each payment, what it was for, and any related expenses. When tax time came, everything was already organized and ready to go. Don't stress too much about the audit risk - as long as you're honest and have documentation, you'll be fine!