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You are in business for yourself and you prepare individual income tax returns. A taxpayer, Shirley, comes to you and asks you if you will
You are in business for yourself and you prepare individual income tax returns. A taxpayer, Shirley, comes to you and asks you if you will prepare her tax return for 2021.
Shirley states that she receives a Form W-2 from her employer, AT&T, and runs a small business on eBay. She said that since she never receives any paperwork at the end of the year for the eBay business so she just reported the net amount she profited as “other income” on Form 1040, Schedule 1, line 8.
a) What would you tell her and why?
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