I have used the square card reader for my phone, and a personal friend has let me use his credit cards for some personal loans. Square up is usually used by business but this has been all for personal use, they take there fee for every swipe, and I pay my friend back monthlyWill I still have to pay taxes on this money?
If the IRS has questions, you will be notified. Loans aren't taxable, but you may have to show them that this is not taxable income if they do question it. Do you have a promissory note with your friend? If not, get one now. Get it notarized. Make sure it has repayment terms, interest charges, etc.
And are you being paid by your friend for working or performing services for this friend that would cause these amounts to be taxable income to you that you did receive as taxable income during the 2012 tax year for this purpose and time in your life. Self employment income schedule C and the SE of your 1040 income tax return for your business income reporting during the 2013 tax filing season for this purpose and time in your life. And you should be the one that would know when you would be receiving taxable income during the tax year for this purpose RIGHT. Hope that you find the above enclosed information useful. 12/19/2012
