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A company or individual does not have to issue a 1099 unless the annual total of payments to an individual is over $600. Essentially this means that you don't have to keep track of who you tip, or pay to mow your lawn occasionally.
Companies can still deduct these payments as expenses by listing them as casual labor.
Individuals must declare all income whether or not they receive a 1099.
This arrangement is perfectly legal as structured if you don't earn more than $600 annually. If you do earn more than $600, you are probably not breaking any laws if you take the cash (and declare it). I don't think that you are any obligation to report the company's lack of compliance to the IRS.
Thanks. That's what I was thinking. As long as I'm declaring the income then I'm safe.
I don't really see anything wrong with it. In college alone I'm sure I made thousands of dollars from babysitting. Never paid taxes or anything on it.
Edit: I'm confused why OP is claiming it for taxes? Maybe I'm just an awful person... but I probably wouldn't. Again, I never put my babysitting income on my taxes, so I don't see why this job would require it?
I guess I would file, because I always have. I never thought of taking an under the table job. I thought when I took this part time job I fill out a tax form and pay taxes. I was somewhat amazed when the employer said this would be under the table. I would prefer to just have the taxes taken out. I guess I'd rather be safe than sorry. Thanks.
Snowden will tell Obama about you. Expect a knock on the door this weekend.
Quote:
Originally Posted by ggumbo
I don't really see anything wrong with it. In college alone I'm sure I made thousands of dollars from babysitting. Never paid taxes or anything on it.
Edit: I'm confused why OP is claiming it for taxes? Maybe I'm just an awful person... but I probably wouldn't. Again, I never put my babysitting income on my taxes, so I don't see why this job would require it?
I wouldn't claim it. I'd use the money to buy items that could never be proven like my groceries.
This country was founded on being free from taxation and here we are, giving all the money WE earned to a tyrannical government.
Right on!
Damn that tyrannical government and all it's evil interferencewith our lives. The interstate highway system, roads in general, schools, clean air, parks, police, fire departments, scientific research like antibiotics. Who needs that sh***t.
Damn that tyrannical government and all it's evil interferencewith our lives. The interstate highway system, roads in general, schools, clean air, parks, police, fire departments, scientific research like antibiotics. Who needs that sh***t.
-Highways and roads- paid for by gasoline taxes
-Schools- property taxes. School lunches? Tobacco and alcohol taxes.
-Clean air? That's regulated not taxed.
-Parks are funded by mostly hunting licenses
-Police and fire are all there to protect someone else from ruining my assets and property which is a guaranteed right. I agree with that.
But why not throw some more on too right?, like just swooping 35% from total income.
I don't really see anything wrong with it. In college alone I'm sure I made thousands of dollars from babysitting. Never paid taxes or anything on it.
Edit: I'm confused why OP is claiming it for taxes? Maybe I'm just an awful person... but I probably wouldn't. Again, I never put my babysitting income on my taxes, so I don't see why this job would require it?
This. Generally if you are getting paid under the table neither party reports the income to the IRS. Not saying it's the morally right thing to do on the whole, but it's only going to make a mess if you file and he doesn't. I highly doubt your company will file as well.
Location: RI, MA, VT, WI, IL, CA, IN (that one sucked), KY
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Quote:
Originally Posted by S.S. Lazio
-Highways and roads- paid for by gasoline taxes
Doesn't cover it.
Quote:
Originally Posted by S.S. Lazio
-Parks are funded by mostly hunting licenses
Not really. Hunting licenses (and fishing) cover DNR/DFG costs in part, but rarely (if ever) all (even in big fishing/hunting states). Pittmann Robertson taxes are a huge chunk of land acquisition fees. There are a host of other fees and Fed cost share dollars that are needed for State/County/Local Park acquisition and mangement.
Of course the "employer" is going to submit a 1099. They're writing of the money they pay you as an independent contractor which they can't do if they're paying you more than $600 a year and don't file a 1099. This isn't a cash business, unless of course you mean he's in a protection racket in which case you wouldn't be running to the DMV I don't imagine.
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