How to record self-employed income in the US
Keep a record of what your business earns, who paid you and the documents that explain each payment. Save the payment evidence as well as the invoice, so you can follow a job from the work you billed to the money you received.
What the IRS expects
Choose a recordkeeping system that clearly shows your business income and expenses, backed by supporting documents that explain the entries in your books and on your tax return. For a sole proprietor preparing Schedule C, preserve the source of income as well as the receipts behind claimed expenses; see IRS — Recordkeeping.
A simple record for each payment
Start with the document you already have: an invoice you sent, a customer's remittance advice or a platform's payout statement. Beside it, keep:
- the customer or payer and a useful reference;
- the invoice date and payment date, when they differ;
- the amount and currency;
- any tax shown and any fee held back;
- the bank entry or other evidence of payment.
This is a working checklist: its purpose is to make a payment understandable later. For a contractor with several jobs, a reference such as the site or project name is more useful than a folder called “income”.
Keep the payment and its costs connected
When a customer pays through a platform, look at the breakdown before treating the deposit as the whole story. Keep the earnings, fee and payout distinguishable. Our platform statement guide walks through that check.
How long to keep the records
Many income-tax records are kept for three years after filing, but the IRS requires longer in several situations. Asset records, omitted income, unfiled returns and certain refund claims have different rules. See IRS's record guidance and our country retention guide for the details.
Bring it together in Bilbx
Add an invoice, payout statement or remittance advice to Money in as a photo, PDF or forwarded email. Bilbx reads who paid, how much and when, and keeps the document with the record. Money in is free. Group your income and receipts into a project for each job, then use Tax Lab to view your income and claimed expenses together.
Explore Bilbx for the US and the published tax rules.
Sources
Ask about this guide
Got a question about your own receipt? Ask it, and get an answer from Bilbx's reviewed guides for the US.
General information, not tax or legal advice.
Common questions
Can I use an invoice as an income record?
Yes, as long as you keep the invoice alongside evidence of payment. Bilbx can read invoices, payout statements and remittance advice into Money in, with the document saved beside the record.
Is Money in part of the free plan?
Yes. Money in is free: Bilbx reads invoices, payout statements and remittance advice and keeps each document with its record. Tax Lab preparation, tax categories and business/personal receipt splitting are free. Tax report exports are included with Premium.
Every figure on this page is checked against the IRS's own guidance and linked in the sources above. Last checked . Thresholds change each tax year, so if you are reading this well after that date, confirm the current figures before you rely on them. Terms.
The tax rules behind this guide
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