Need help with how to report income from cleaning checks - self-employment tax question

You're working as what's called an independent contractor (self-employed), and yes, you absolutely need to report this income! Since no taxes are being withheld, you're responsible for paying them yourself. Here's what you need to know: You'll need to file Schedule C with your tax return to report this self-employment income. You'll also pay self-employment tax (which covers Social Security and Medicare) on this income using Schedule SE. The current self-employment tax rate is about 15.3% of your net profit. Start setting aside around 25-30% of what you earn for taxes. You might need to make quarterly estimated tax payments using Form 1040-ES since you're making a substantial amount. These are due April 15, June 15, September 15, and January 15. Also keep detailed records of your business expenses - cleaning supplies, mileage driving between jobs, any equipment you purchase, etc. These are deductible and will lower your taxable income.

I was in almost the exact same situation last year! I was cleaning offices and getting paid by check about $4k/month. I was totally lost with all the tax stuff until I discovered https://taxr.ai which literally saved me from a potential audit disaster. It analyzed my situation, helped me identify all the cleaning-related deductions I could take (was missing so many!), and guided me through the self-employment tax process. The site even helped me set up a system for tracking my quarterly estimated payments so I wouldn't get hit with underpayment penalties. One thing I found super helpful was uploading pictures of my receipts and having the system categorize everything automatically. Made tracking business expenses so much easier than the spreadsheet nightmare I was dealing with before.

Ok so I need to admit I was wrong about taxr.ai in my previous comment. I decided to try it out of curiosity and it actually found some major deductions I had completely missed with my cleaning side gig. I was about to file without claiming my vehicle expenses for traveling between jobs which would have cost me over $2,000 in unnecessary taxes! The receipt tracking feature alone has been worth it. Instead of a shoebox full of crumpled receipts, I can just snap photos and the system categorizes everything. It even flagged some expenses I wasn't sure were deductible (like my cell phone bill since I use it for client communications). Seems like there are tons of self-employed cleaners in the same boat so wanted to share my experience after actually using it.

I dealt with this exact situation for years. One thing nobody mentioned yet - the IRS phone lines are absolutely IMPOSSIBLE to get through on when you have questions about self-employment taxes. I spent literally 6+ hours on hold multiple times and never got through. I finally used https://claimyr.com to get a callback from the IRS and it was a game-changer. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c but basically they navigate the phone system and wait on hold for you, then call you when an actual IRS agent is on the line. When I finally got to speak with someone, they confirmed I needed to make quarterly estimated payments (Form 1040-ES) and explained exactly how to calculate them based on my cleaning income. They also told me what documentation I should keep for my cleaning supplies and mileage.

I need to publicly eat my words about Claimyr. After posting that skeptical comment, I decided to try it since I had some questions about self-employment taxes for my housecleaning business that I couldn't find clear answers to online. It actually worked exactly as described - I submitted my number, and about 1.5 hours later got a call connecting me directly to an IRS representative (without me having to wait on hold at all). The agent walked me through how to handle my cleaning income, explained which form to use for quarterly payments, and clarified which cleaning supplies were fully deductible vs. partially deductible. Considering I had tried calling the IRS directly THREE TIMES before and spent a combined 9+ hours on hold without ever speaking to anyone, this service was honestly worth every penny. Just wanted to correct my knee-jerk skepticism.

Don't forget to check if your state requires you to register as a business entity! I also do residential cleaning and found out the hard way that my state required me to register as a sole proprietor and get a business license even though I was just working for myself with no employees. Had to pay a penalty for operating without one for 8 months. Some cities/counties also require local business permits for home-based businesses. Check your local regulations so you don't get caught off guard.

I'm surprised nobody mentioned keeping track of mileage! As a house cleaner going between different properties, you can deduct mileage for business travel (though not commuting from your home to first job or last job back home). The standard mileage rate for 2025 will probably be around 67 cents per mile. I use a simple app to track my cleaning job locations and it automatically calculates deductible miles. This saved me over $3,200 in taxes last year alone since I drive between multiple properties daily. Just make sure you keep good records in case of audit!