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Unemployment may very well never find out, but there is every chance that they will. As more and more governmental agencies cross-reference their info and databases, the risk gets higher. Like others have said - the IRS is your main concern right now.
The IRS is the main concern, but it is also the least of his problems if he handles his IRS responsibilities legally.
As long as he claims the earnings on his income tax filing and pays his taxes on the 6k+ he earned and the unemployment he collected, he is in total compliance with the IRS.
In other words, he hasn't done anything illegal yet with the IRS, but he has broken the law with unemployment.
btw, I agree that it's unlikely unemployment would find out. But it's a big gamble because the consquences will increase.
He has to give the employer his social security number. He will make matters worse if he doesn't.
He has to file his income taxes and pay taxes on all income. He will make matters worse if he doesn't.
He should consult an unemployment lawyer about unemployment.
The IRS is the main concern, but it is also the least of his problems if he handles his IRS responsibilities legally.
As long as he claims the earnings on his income tax filing and pays his taxes on the 6k+ he earned and the unemployment he collected, he is in total compliance with the IRS.
In other words, he hasn't done anything illegal yet with the IRS, but he has broken the law with unemployment.
Hadn't thought of it in that way but you're absolutely right - good point!
1) He owes the IRS self employment tax rates for the over 6k he received.
is that anything over 6k or all of it because its over 6k? 6k is the threshold for MISC income becoming self employment income? that is the only job I did this whole year. Just that one website.
is that anything over 6k or all of it because its over 6k? 6k is the threshold for MISC income becoming self employment income? that is the only job I did this whole year. Just that one website.
I put the + after the 6k because you obviously earned more than 6k since you received 6 checks that were over 1k each.
IRS website says you are subject to self employment tax on any earnings over $400. Remember - self employment tax is different than regular federal taxes. It is the FICA component. When you are self employed, you pay both sides. When you are on payroll, your employer pays one side.
So he'll owe federal taxes plus self employment tax.
is that anything over 6k or all of it because its over 6k? 6k is the threshold for MISC income becoming self employment income? that is the only job I did this whole year. Just that one website.
You edited your post after I responded to the previous version
1099s are to be issued when you make over $600. All of your $6K is taxable income. Doesn't matter if it's the only thing you did all year.
Can't imagine any company that would agree to that.
A $5,401 discount? You lack imagination.
Quote:
Originally Posted by jkcoop
- their books are done for 2010.
How do you know?
Our books were only closed yesterday.
You don't know. You are assuming.
For enough money, any company would open 2010 and change the numbers.
Quote:
Originally Posted by Hopes
... it's unlikely unemployment would find out. ...
You do?
Don't you think this happens all the time??? Pretty much every state communicates with the IRS
and vice-versa for regular tax stuff. Reporting 1099's is easy. If I could do it, I'd place a bet.
Do you honestly think he has the money to refund to the client in the first place???
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