I hear Paypal doesn't report to the IRS as of 2009. Is that troof? Is not declaring Paypal income a grey area? Are there any expenses I may not be thinking of? This is my first year having self employment taxes. I've got: - Computer - Monitors - Domains - Hosting - Random software I either paid for or have subscriptions for - Internet bill - Office furniture (even though all of mine is like 10 years old so I can't really count it) - I don't have a phone line or anything, and I don't use my cell phone for business. Unless you count checking my business email from my cell phone's browser. Does that count? Anything else I'm not thinking of? Like I said I've never had to come up with this before so I might be overlooking some obvious stuff.