ANSWERS: 10
  • Doesn't that defeat the purpose of working under the table? Unless your some sort of Diametrically opposed bus boy or freelance dried bubble gum eradicator. ( I coulda made a tasteless joke about midgets, but I don't want a buncha little people, outraged at my non PCness, attacking my knees.[ or some not quite so little people attacking parts I have a more affectionate regard towards]) At any rate, if you look on your non EZ 1040 form, you'll see a space for unreported income. Just fill in the blank. I don't think there is a blank for that on the EZ form. But then I am niether a PC person nor CPA person. As a furniture maker I HAVE worked on the underside of tables, but unless the table is just way too heavy to turn over, i rarely work under the table. And if I do, I definately don't report it. You see... 'scuse me, somekinda problem with the online connection here... Wha..? non warrented search? huh? IRS? What kinda word is that, how do you pronounce that? Now there's somebody at the door, just a minute, I'll be right ba (02-16-06,nmj) scuse me, postmuffin, see where I said-" At any rate, if you look on your non EZ 1040 form, you'll see a space for unreported income. Just fill in the blank." If that don't answer the question I don't know what does, Tho I should have added I don't know exactly which return to file. I do know Form 1040 has a space for unreported tips. Some people in businesses where they get tips work "under the table", from the employers point of view, which has lots of benefits for the employer and very few for the employee. (02-20-06, nmj) Shall we just say, "Worst answer ever?" I was more than a bit flippant, in my own defense the question is not very clear, I do not understand why anyone would arrange to work "under-the-table" and then negate the whole "covert and usually unlawful" scheme by then reporting the activity to the IRS. http://www.m-w.com/cgi-bin/dictionary?book=Dictionary&va=under+the+table Perhaps it was the use of the term that led me to the flippancy, as it did not appear to be a serious question, but no excuse, mea culpa. If it was just a poor choice of words and there was no attempt to defraud on your part or the 'employer's', i.e., the 'employer' was just making a misguided, uninformed attempt to simplify bookkeeping, your work would probably be classified as "self employment." To report the income you will probably need to file Form 1040, Schedule C Profit or Loss from Business (Sole Proprietorship) , or possibly Form 1040, Schedule C-EZ Net Profit from Business . In addition you may need to file Form 1040, Schedule SE Self-Employment Tax, Form 1040-ES Estimated Tax for Individuals, and/or Form 2210 Underpayment of Estimated Tax by Individuals. You may need to provide other records to the IRS, such as proof that you are a 'business' and have received payment from other customers for similar work or a copy of the invoice for the work you gave the employer when the work was done. ( Just hope he didn't report a higher amount as a business expense on his return.) You do not have to "have a business," but simply perform services as a nonemployee to have your compensation treated this way. But in that situation, the two of you should have used a 1099, and then filed using the same forms as above. It is not too late, you can request a 1099, good luck. In a 1099 situation the payer has determined that an employer-employee relationship does not exist in your case. That determination can be complex, it is based on who controls how, when, and where the service was performed. It is not based on how you are paid (based on time, completion, piece work, etc.), how often you are paid, nor whether you work part-time or full-time. If you have done similar work for the same person during the year using 1099, things are going to get complicated, the IRS is liable to take a closer look at both of your returns. If you have done similar W-2 work for the same person things get even more complicated. Other complications arise if this is the only person you have done such work for. The two of you might want to take a look at Chapter 2 of Publication 15 , Circular E, Employer's Tax Guide and Chapter 2 of Publication 15-A , Employer's Supplemental Tax Guide. You can ask the IRS to issue a determination, by using Form SS-8 ,Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. Kid, in future, if you want a definite answer you might spend a little time searching a legitimate, authoritative, official site instead of asking someone on the bag to do it for you, and where just any idiot can answer. For example, the info above was easily found on the the FAQs page at http://www.irs.gov/index.html , where you can also order or download the forms and publications I mentioned. You can low rate me all you want, even rate my answer offensive, but let's watch the name calling, after all I am not the one trying to defraud the rest of us honest tax payers by getting involved in a "clandestine and often illegal" scheme. http://encarta.msn.com/encnet/features/dictionary/DictionaryResults.aspx?refid=1861707823
  • Under the table, over the table, behind the garage, all income is taxable. Income for which you have no 1099 may be reported as "other income" on your 1040.
  • It sounds like - after you further explained - that you are a self employed painter. Just because you don't have a license doesn't make it legal income. You could file as a self employed business using Schedule C and here you can also deduct expenses you incurred. Then you would pay taxes and social security on your income and all would be legal.
  • You are walking on very thin ice. the internal revenue's computer will catch this in a heartbeat. Income tax fraud is income tax fraud. Being paid "under the table", will defeat you in the end. here is an example: Men and women were hauling wood pallets to a buyer, with no questions asked. no taxes, no names, no nothing. i advised these people that one day, the internal revenue service would investigate this scheme. they were paid "under the table". we are talking about $3.00 per pallet. pallets were being transported by the huge truckloads. some were even stolen. some people were walking away with $500 to $1,000 dollars a day.....tax free. The time came and the _hit hit the fan. the internal revenue service went up their rear end with a microscope. their cases are pending. This was just an example of what can happen when one is paid "under the table" and the irs catches you. and, they will.
  • What about your clearly expressed illegal intent to defraud the citizens of this country by refusing to pay FICA and Medicare taxes (yes they ARE taxes) on your earnings? Your quote on Feb 11th was: "Taxes yes but i do not have to pay into social security if i don't want to.From what i have read,by the time i am old enough to collect they will not have enough to pay out anyway. I have also heard they are talking about raising the age when one is able to collect anyway." If you have, as it appears, been mislead into believing that the FICA / Medicare deductions from "over the table" pay are somehow "voluntary", please consider this a NOTICE TO SCOFFLAWS for you and anyone else who thinks like you: The US Government WILL AGGRESSIVELY PROSECUTE and MAKE AN EXAMPLE OF YOU for such errant thinking. Report it all and pay your fair share. Your IP address has been recorded for tracking purposes. We know who you are....
  • I think you can use the form 1040 and enter it as reportable income or self employment income. I'm looking into this myself. Here is what I found at the IRS.GOV website. It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income. All income earned through the taxpayer’s business, as an independent contractor or from informal side jobs is self-employment income, which is fully taxable and must be reported on Form 1040.
  • Wow! look at all these good citizens here. The answer to the question has been covered, maybe overly so. I would like to add that any "earned" income needs to be reported in a different place than "other" income, as Fmullen suggests. This is because for the average guy "earned" income means Earned Income Credit. What the IRS calls "Other Income" is on a different line and will only steal away your State refund when improperly entered. It is the Schedule C that you have to file as an earner of "income" that isn't from a traditional employer. But remember that the more forms you file, the more it looks like you are trying to be a real business instead of the neighborhood handyman (with a little cash in hand). As a matter of fact it's a pretty valid point right now that people MAY need to report Under The Table income just to come UP to an place where they can get a descent EIC return. Wait now wouldn't that be cheating? It seems to me that instead of getting mad at tax cheater you ought to realize that there may be truth out there that you haven't heard. I know for a fact that 100% of private citizens in America are allowed to go help their family build a garage in their backyard or mow a lawn weekly for the old or extremely HOT neighbor. It's our most sacred right to do what we want... freedom. Now Uncle Sam wants to tax that and all you good people are tripping over yourselves trying to convince the virtual group of your desire to pay. I just got done with my taxes with the online software TaxAct.com. Look what the help file says about what is considered income. Chapter 2 - Taxable Wages, Salary, and Other Compensation Except for tax-free fringe benefits (Chapter 3), tax-free foreign earned income (Chapter 36) and tax-free armed forces and veterans' benefits (Chapter 35), PRACTICALLY EVERYTHING YOU RECEIVE FOR YOUR WORK OR SERVICES IS TAXED, WHETHER PAID IN CASH, PROPERTY, OR SERVICES. (Emphasis mine)... TaxTutor by J.K.Kessler part of TaxAct.com software Do you understand that that means that when my neighbor's garage is built that we both have to estimate and record our efforts for proper reporting to the IRS. The Construction Trades get union wages. I could do the $600 requirement for a W-2 in about a week and he would have to file as an employer and at the end of the year ensure I had a W-2. HELLO! "For the people, By the people" Based on the American's right to freedom the government can neither restrict my freedom by forcing me to track my (good spirited) garage building efforts nor my neighbor to issue his friends some tax forms. Do the Amish people report their efforts and taxable gains from community built houses and barns? Should I report a six pack of beer and pizza for my kids? As far as a persons responsibility to file; it depends on if you received cash, property or services because you did work or because the relative value of a property you own has increased. Ya see you don't work for income. You work for wages which are not the same thing as the IRS' definition of "income" which is not worked for or earned. It is interest and capital gains and stock dividends that are true income, those things which are issued by or controlled by government. Sell your house and get a profit - Income Look there is way too much to understand for those who assume that there just is no big picture. that those with sight are kooks and felons. Render unto Caesar both his and yours too if you please.
  • The idea of getting paid under the table is so that you don't have to declare your income on your tax return. If you declare it but the employer doesn't claim it, you are opening yourself and the employer up to being audited.
  • What does my income tax actually pay for? How does the government use it? I can see social security and FICA and all the other bullsh*t, but seriously, why is the INCOME of my LABOR being taxed anyways? Isn't that UNCONSTITUTIONAL?
  • Contractors get a 1099 form (post offices and public libraries frequently have them or get them on-line). By definition working "under the table" indicates the money isn't reported.

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