How do I file self-employment taxes if I do not have any invoices due to the nature of my work?

Trending 1 year ago

I constitute articles connected my website and cod donations from anonymous group connected nan Internet via PayPal. I extremity up pinch a adjacent spot of income that measurement each year, but it's ne'er a ample amount, truthful I'd ever record my "business income" based connected what I cashed retired of my PayPal account, and it's ne'er been an rumor aft each these years.

However, past twelvemonth was peculiarly successful, and I cashed retired rather a batch of money. A important capable magnitude that it whitethorn perchance propulsion a reddish flag, since it's vastly greater than nan ballpark magnitude I usually file.

Now nan rumor is, though I tin proceed to record arsenic I ever have, I don't really person immoderate business invoices to supply to backmost this income, owed to nan quality of nan money being donations. The only archiving that I could supply would beryllium my slope relationship transactions, and nan PayPal withdrawals shown connected them.

On nan PayPal side, they aren't marked arsenic Goods & Services; they're conscionable nonstop credits marked arsenic "Donation" successful nan notes. Hence, I don't person immoderate specifications astir nan senders of nan donations either. The champion I could supply would beryllium a summary of each nan credits I received and debits I performed successful my PayPal account.

In this peculiar scenario, what should I do to screen myself during immoderate imaginable auditing? I'm afloat prepared to record nan taxes connected each of nan money I cashed out, that's not an issue. I'm not trying to evade taxes aliases anything. The rumor is that I don't person immoderate meaningful archiving to supply successful lawsuit nan authorities asks, "Where did this money travel from?" I don't person immoderate insubstantial way to provide; only my connection for them to believe.

Also, moreover if I do get by past year's return scot-free, consequent years will beryllium hazardous arsenic well, arsenic I whitethorn not make astir arsenic overmuch arsenic I did past year. So it will abruptly beryllium a chemoreceptor dive successful income, which would again beryllium a reddish flag.

Thank you for taking nan clip to help.