What is "under the table" income, and do I need to report it?

What is "under the table" income, and do I need to report it?

You hear the term "under the table" bandied around when you're talking about taxes. It may be in the back room of a bar, but you'll hear people say, "Well, that's 'under the table', you don't need to report it." Bear in mind the code section of the IRS. And again, not to use numbers, but section 61, a very simple section, says all income from whatever source is taxable, unless it's specifically excluded. Court cases have defined that as income is income. It doesn't matter whether it's legal income or illegal income, it needs to be reported. The likelihood of someone reporting illegal income is another story. But there is no such thing as "under the table" income. You did a job for somebody and they gave you $100 in cash, and you said, "Well, I'm not going to report it to anybody, you don't have to report it, it's under the table." That income should be reported on your tax return. You worked, you got $100, it's income, it needs to be reported.