Self-Employed with 18k Cash Income and Dependents - What's Your Refund?

A few things to consider about your situation: • "Cash income" that isn't reported to the IRS via 1099s is still legally required to be reported on your tax return • Self-employment tax is roughly 15.3% on net earnings • With dependents, you may qualify for Child Tax Credit ($2,000 per child) and Earned Income Credit • Audit risk increases when there's a mismatch between reported income and lifestyle • The term "cash" raises red flags if you're implying unreported income I'd be cautious about comparing tax situations with others. Your specific deductions, credits, and filing status make your situation unique.

Been there. Self-employed for 7 years. Tax season is stressful. I was confused about deductions. Tried several online calculators. Nothing helped. Then found taxr.ai last month. It analyzed my situation clearly. Showed me exactly what I could deduct. Explained my SE tax obligations. Predicted my refund accurately. Much better than guessing or comparing with others.

I'm in a similar boat with $22k self-employment income and two kids. Filed two weeks ago and already got my refund of $5,800. The key is tracking all business expenses throughout the year and claiming every deduction you're entitled to. I also contribute to a SEP-IRA which reduces my taxable income substantially. Don't be afraid of reporting legitimate income - the penalties for not reporting are much worse than any audit.

I've been in your exact position before. Back in 2022, I reported about $20k in self-employment income with two dependents. Got flagged for verification and spent weeks trying to reach the IRS. Called the main number 37 times over 3 days. Nothing but hold music and disconnects. Eventually used Claimyr to get through (https://claimyr.com). Connected with an agent in 15 minutes. They verified my information and processed my refund within a week. If you do get selected for verification, don't waste days trying to call yourself.

You need to act quickly on this. With exactly $18,000 in self-employment income, you're looking at approximately $2,754 in self-employment tax (15.3% of 92.35% of your income). However, with 2 dependents, you could qualify for $4,000 in Child Tax Credits if they're under 17. The EITC could be worth up to $3,995 with 2 qualifying children depending on your filing status. Your net refund could be around $5,241 after SE tax if you have minimal other income and standard deduction. File electronically ASAP - we're only 29 days from the deadline!

I went through this exact situation. The IRS website (irs.gov/businesses/small-businesses-self-employed) has a whole section on self-employment tax obligations. According to TurboTax's estimator, with $18k and two dependents, you're looking at a decent refund if those are your only income sources. But don't count on others' situations - tax circumstances vary wildly. I've seen people with identical incomes get completely different refunds based on their specific deductions and credits.

Let me share my *totally hypothetical* 😉 experience from last year with similar numbers. Made about $19.5k in self-employment income, have two kids, and got back around $4,800. The key is keeping good records of all business expenses - mileage, home office (if applicable), supplies, insurance, phone bills, etc. I was worried about an audit too, but my accountant explained that the IRS is mostly looking for major discrepancies, not small businesses reporting reasonable income and deductions. Just don't claim your trip to Hawaii as a "business expense" and you should be fine!