My accountant told me that you should always report more income that what you receive on your w-2's or 1099's.  (if is off then you should re check your records)  The IRS looks at the totals of those forme and they make sure  you are not reporting less income than what everyone else says.  If your report less and the total of those 1099's etc report more, you will also have to explain the reporting error.  Also, make sure your deposits are close to the money you claim you made.  The IRS also monitors your deposits.  Just my opinion, I am going by people who have been audited.  C.