Short answer:Yes
Longer answer: You’re required to report all the income your receive, regardless of how you receive it. That includes payments you get as cash, check, or property. Technically speaking, if you find a twenty dollar bill on the street and pick it up, that’s income. But we both know the IRS has no way to find out about it.
Does that mean you should make all your tax reporting decisions based on whether or not you think your income is traceable?
Nope. Especially if you’re talking about amounts that add up to significant dollars. It’s a total myth that there are some kind of limits you have to go over before you’re required to “declare” certain income.
- You have to report cash payments you get from customers
- You have to report goods or services you receive by bartering
- You have to report income you get from a part-time business
- You have to report income from a business that’s not your “regular” work
- You have to report commissions, bonuses, awards, gifts, and prizes (listen up, direct sellers)
In other words, income is income, regardless of the source, the amount, or the frequency with which you receive it.