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So, is it legal not to claim it, and are the tax refunds I get back from the write-offs going to amount to more than the income tax? If the benefits are small to claiming it, I'd rather avoid hassle and not claim it
The FED's have done away with the Personal Exemption, the Standard Deduction is now 12,000.00 for single filing status. To claim such work expenses as you outline, you must Itemize, if you don't, you can't claim any.
If your Itemized deductions are not more than the SD, forget it.
My first partner, back in the 70's, worth over $10 million, used to brag that he never paid taxes, his biggest expenditure was tax consultants, like most rich people.
I'm gathering that the income is not sizeable enough to hire a tax consultant, so to be safe, I'd report it.
The FED's have done away with the Personal Exemption, the Standard Deduction is now 12,000.00 for single filing status. To claim such work expenses as you outline, you must Itemize, if you don't, you can't claim any.
If your Itemized deductions are not more than the SD, forget it.
NOT CORRECT!! You are confusing deductions that people take for health care costs, mortgage interest, misc. "regular" job expenses, etc. (that's what your link is about), with deductions that independent contractors can take on Schedule C, Profit or Loss from Business. The Schedule C expenses would be things like mileage, which could add up since the OP is doing a paper route.
OP, report it, and report all your expenses, which will reduce the taxable income from that job.
Of course the company the OP is working for will file a 1099. If the guy is delivering newspapers the publisher is showing the delivery company as an expense for them therefore the delivery company will be showing the OP and his counterparts as business expenses for them and documenting it with the 1099.
The OP needs to document all his miles and all his car expenses to include fuel, repairs and insurance because he will need this information in filing his Schedule C. The company he works for may not care if he shows the income and expenses on his taxes but be assured they'll be showing theirs.
If you fail to report income there are penalties if caught, if you dont get caught your income will be lower and it may affect Social Security benefits.
I just got hired for an early morning paper route and was told that as such, I am considered an independent contractor. They further said that whether I claim the income or not is up to me.
Is it true that I dont have to claim the income? They said if I did, the benefit would be I could write-off my car, fuel, supplies, and a few other things. Obviously, if I dont claim it, I don't pay tax on it.
So, is it legal not to claim it, and are the tax refunds I get back from the write-offs going to amount to more than the income tax? If the benefits are small to claiming it, I'd rather avoid hassle and not claim it
Someone pls advise which is the better option.
It's up to you whether you want to commit tax fraud. I mean, you can double check with the contractor who you're contracting with. It sounds like what he's saying is he's fine committing tax fraud and won't file a 1099 as required if your earnings are over $600.
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