Cash Income Records for Sex Workers

Reviewed October 2, 2026. General federal tax guidance; state rules and individual circumstances may differ.

Record cash business receipts as you receive them. Cash income does not become tax-free because it stays out of your bank account or arrives without a 1099.

What belongs in a cash income log?

Record the date, amount, type of business receipt, and a reference to supporting records. Use a consistent system and keep it secure. Avoid collecting unnecessary intimate or identifying details.

How should I handle bank deposits?

Reconcile cash receipts, cash expenses, and deposits. Depositing money you already recorded as income does not create a second sale. Identify transfers, loans, and other non-sales deposits separately.

Example: receipts versus deposits

If you receive $300 cash and later deposit $200 of it, your business receipt remains $300. The $200 deposit is movement of that same money, not additional revenue.

How do I document cash expenses?

Keep the receipt or invoice, amount, date, payee, proof of payment, and business purpose. A handwritten total alone may not provide enough support.

Can SWT help with incomplete records?

Yes. Tell us which years are involved and what records you have. We can discuss organizing available records and preparing accurate filings. Do not invent figures or destroy original documents.

Source: IRS business recordkeeping guidance