A couple will report approximately $40,000 in income for 2006 (per W-2s). The husband also gets paid in cash from his employer totalling $60,000 for the year. He wants to report this income so as not to raise a red flag with the IRS. He feels that his expenses (ie mortgage interest, taxes) reflect that of a person with alot more than $40,000 of income. Would he report this extra income on Sch C.? Would it be subject to self-employment tax even though he is not self-employed? Could it be reported as income not subject to S/E tax? He does not want to report his employer.
Any advice would be appreciated, from knowledgable tax preparers only, please. Thank you.
2006-11-19
23:03:35
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6 answers
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asked by
tma
6
in
United States