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Old 01-26-2014, 05:47 PM
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Exclamation All Cash Wages, VA Benefits, and Dependents

I am desperately trying to find any information I can, to best file my taxes this year. So, any and all information, and advice, is greatly appreciated. I will try to include as many details as possible. Thank you in advance!

I am a 28 year old female, with 2 dependents under 18 (my children). I receive a small monthly check from Veterans Affairs for a service connected disability, we are on state aid (Food Stamps only), and I am a bartender. I do not get paid my employer whatsoever. My only income is cash tips I receive the 3 days a week I work, from customers. I have kept a detailed tip diary of what I have received each time I work. And, lastly, I am divorced.

This is the first time I have ever worked for cash, and we do not have any kind of electronic system to claim tips for tax purposes. My questions are as follows:

1. Since I have kept up with all of my tips, can I just turn these in with my tax preparer? Or, should I have been taking out taxes on myself this entire time?

2. Will I qualify for a return? Every estimation I've done says I will not get one.

3. My boss says he does not supply the 1099-MISC form, and we need to handle in accordingly to each of our own needs. (Not sure what that means)

4. Overall, what should I do to ensure I'm doing this properly and legally according to the state of Tennessee.

Thank you!

3.



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Old 01-27-2014, 05:04 AM
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Originally Posted by HLea View Post



#1. Since I have kept up with all of my tips, can I just turn these in with my tax preparer? Or, should I have been taking out taxes on myself this entire time?

#2. Will I qualify for a return? Every estimation I've done says I will not get one.

#3. My boss says he does not supply the 1099-MISC form, and we need to handle in accordingly to each of our own needs. (Not sure what that means)

#4. Overall, what should I do to ensure I'm doing this properly and legally according to the state of Tennessee.



3.
#1;UNLESS you receive a W2 from your ER, then, you are required to file a tax return as a self employed taxpayer when you are being treated as a independent contractor (not a employee with an employer) receiving a 1099 from the ER.then, You will need to report that income, and any related expenses, on Form 1040, Sch C, or you may qualify to use Form 1040, Sch C-EZ, aslongas the amount on SCh C line 29/31 is $400 or exceeds $400. You will also need to use the Form 1040, Sch SE form to compute and report your social security and Medicare tax on the net profit from the business operation(aslong as the amount on Sch SE line 2/3 is also $400 or exceeds $400. If you are filing as a 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.however, Legally bartenders would generally be classified as employees and get a W-2. Sometimes they might legitimately be contractors, and some employers misclassify them as contractors even though legally they are really employees.


#2;it depends.



#3; If you received tips at your job, it should have been reported to your employer and included in your W-2 less you receive a 1099 form your boss. The amount would be included on line 7 of your 1040. If you have no W2, and you keep missing forms or information that the IRS needs and it may cause your return to get rejected.if you do not receive a w2 either from your boss, then, You have two choices; File form SS-8 with the IRS reporting this, and the IRS will get the employer’s share of the tax from him or Just file form 1040 with sch C showing this income including the tips, fill out sch SE, and pay his share of the tax along with yours. You can contact the irs for more info in detail asap.


Note;If you work at the same bar routinely and work a schedule that your boss has set up, you are most likely an employee and should be paid on a W-2. If your employer tries to pay you on a 1099, you will need to contact the IRS who will make a determination based on the circumstances.

#4;For your home state return on you tip income, I guess you need to contact the Dept of Rev of TN state; Contact Us



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