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Old 01-17-2014, 01:14 AM
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unemployed but had income

Hiya,iam unemployed and do not receive unemployment,i stay at home and home school my 3 youngest kids.during the year i was ask to do odd jobs here and there for different people at different times amounting to about 3000.00.now all the jobs where paid in cash with no receits or 1099 or w2 or proof of it.iam married and we file jointly.can i show this under other income without a problem?


Last edited by gleanerl : 01-17-2014 at 01:21 AM.


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Old 01-17-2014, 05:05 AM
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Originally Posted by gleanerl View Post

during the year i was ask to do odd jobs here and there for different people at different times amounting to about 3000.00.now all the jobs where paid in cash with no receits or 1099 or w2 or proof of it.iam married and we file jointly.can i show this under other income without a problem?
UNLESS you are an EE receiving a W2, An ER , I mean a payer of cash, who pays you in cash is almost certainly not withholding payroll taxes or income taxes from your pay. For tax purposes, you are actually working as a self-employed contractor in this case evn if no 1099 is issue to you. Depending on your income, you may have a significant tax bill coming because you must pay the entire Social Security and Medicare payroll taxes yourself, which comes to 15.3 percent as of 2013. Fortunately, filing these taxes is not too complicated, provided you have a record of how much cash you earned for the year.You may file either Sch C / Sch C-EZ;as long as the amount on SCh C line 29/31 is $400 or exceeds $400 , you must file return and also as long as the amount on Sch SE line 2/ is $400 or exceeds $400 you must pay SECA tax to the IRS. ALSO, as you are filing as a sort of sole proprietor and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1K or more when you file your return.however, You do not have to pay estimated tax for the current year if you had no tax liability for the prior year; You were a U.S. citizen or resident for the whole year; Your prior tax year covered a 12 month period. You had no tax liability for the prior year if your total tax was zero or you did not have to file an income tax return.
Note; cash income, by its very nature, is very difficult to track. Many times, those paying cash for employee salaries are doing so because they also have something to hide. Usually, it is in the best interest of a business to keep meticulous records concerning employee payroll. Business paying cash may be doing so to make it easier to continue certain business practices such as employing illegal immigrants or paying less than minimum wage or not to match FICA txes fro EE. Still, it should be noted that not all companies paying cash for salaries are doing so because they desire to be unscrupulous.



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Old 01-17-2014, 12:03 PM
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Confused

iam not self employed i dont have a business of any kind and the work was all of different natures nothing in same field to say i have company,so how would that work?



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Old 01-17-2014, 03:29 PM
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Originally Posted by gleanerl View Post
iam not self employed i dont have a business of any kind and the work was all of different natures nothing in same field to say i have company,so how would that work?
i know it; however, you still need to file Sch C/Sch C- EZ for the income of $3K as I said previously, UNLESS it is your W2 income/awards or etc.the income is regarded as your self employment income, NOT other income/wages;please contact a CPA/an IRSEA in your local area for professinaal help/ contact the IRS for more info in detail.



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