Aaron (web designer) asks:
I’m a web designer who works as an independent contractor. I know that one of my clients is not going to be filing a 1099 for me. Do I still have to report this income?
Answer:
The short answer: yes. Even if your client isn’t filing a 1099 (which they should be if the amount they paid you is over $600), it’s still taxable income to you. If the IRS later finds out that you intentionally underreported your income, they’re going to be coming after you for the tax you owe on it, and they’re going to be adding on what could likely be a sizeable bill for interest and penalties as well.
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