How to Earn Extra Cash Tax Free

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By Amy Laine
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Earn Extra Cash Tax Free

As many are looking ways to earn extra money, it is easy to be discourage by learning how much taxes can be taken out of the extra cash we earn. However there are legal ways to earn a little extra cash tax free.

Difficulty: Moderately Easy

Instructions

Step 1

Donate plasma: You not only saving lives by donating your plasma for research and others life saving proposes but in many cases you can earn up to $250 a month tax free. This income is usually given in cash, and legally no reporting on this income needs to be reported to the government. To find plasma donating site near you go to biolifeplasma.com.
Step 2

Rent out a extra room in your primary home. You can be renting your self or own your home but it must be your primary home. If renting you must get permission from your landlord first. Individuals that may be wanting to rent a room are either college students, new to the area, or are just wanting to live in the area for a short time. Check with your accountant before setting rent to check limits on what you can charge for rent without getting taxed.
Step 3

Earn extra cash tax free by getting rid of stuff you no longer need. You may choose from various options such as having a yard sale or selling on eBay. Just keep in mind income is only tax free if you are selling casually items that you no longer need, extra income will become taxable when you start relying on the income to live or you start buying products just to sell.
Step 4

See resources below for more information on earning a extra income.

Comments

amylaine said

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on 9/30/2009 As said in the article above always check with a accountant that is knowledgeable with tax codes. Each area may be different. While you still may have to report it against by showing it reduces you rent or mortgage, most areas do not show it as taxable income. No where in the US do you have to count items in your tax return for small items in your home that you are going to resale. This of coarse does not count high priced items such as collector items, cars, houses, or expensive electronics. Plasma donation centers have a agreement with the federal government that allows participants not to have to show income on taxes.

mikelb said

on 9/30/2009 Once again, I admire this writer for her attempt to give people ideas on how to earn extra money. However, the reader should be aware of the fact that the United States tax code is lengthy, complex, and complicated. Much of that tax code is concerned with discussing income and categorizing it as taxable or non-taxable. When someone writes about the federal tax code and deals with the topic of income, the writer should have done sufficient research in the tax code to be sure of what she says. If the writer is not a tax expert herself, she should check her assumptions and interpretations and what she is claiming to be fact with a qualified tax expert (such as an IRS agent who audits federal income tax returns, an enrolled agent, or a CPA who specializes in federal taxes). Taxes are so complicated, there is even a tax court that hears cases when a taxpayer has a different interpreta...