I worked on a friend's computer. She wanted a receipt because she is a Pastor and uses her computer for church. I don't have a business or anything. If she uses my receipt on her taxes how am I affected?
Thanks!
2006-09-11 03:50:29 · 5 answers · asked by gregblyde 1 in Business & Finance ➔ Small Business
She paid me 20 dollars for the work. 20 was the full amount.
Thanks again for your answers.
2006-09-11 04:09:19 · update #1
I am assuming that your friend paid you for working on her computer. She then charged the church, at least in part, for what she paid you, and the church will include you among their expenses. The receipt you gave your friend was for money she actually paid you, right?
If this is the case, that money was income, and while you haven't actually formally set up a business, you need to count this as income on your taxes. If your friend's church gets audited, it could come back to haunt you if you don't. There isn't a limit to how much you can do, but you do need to count all income on your taxes. If this is the only such work you have done, it is less likely to catch up with you than if you fix computers regularly for money without paying taxes, but it would still be illegal unless you report it.
The other possibility (less honest on your friend's part, which I hope isn't the case for a pastor!) is that she had you give her a receipt for some amount she didn't actually pay you. In that case, you would be responsible for paying taxes on an amount you never got, since the receipt could be used as proof that you were paid.
2006-09-11 04:02:57 · answer #1 · answered by neniaf 7 · 1⤊ 0⤋
There's no limit on what you make on side jobs, but you have to claim the income on your taxes.
You should ask her for a 1099 form, which states how much she paid you for the job. You'll need to add your earnings for the job to your total pre-tax income, and include the 1099 form with your tax return.
2006-09-11 10:56:15 · answer #2 · answered by johntadams3 5 · 0⤊ 0⤋
Giving her a receipt is being dishonest. It's assuming she PAID for you to work on her computer.
If she PAID you, then you would have to claim it as income on YOUR taxes.
2006-09-11 10:54:16 · answer #3 · answered by just me 4 · 1⤊ 1⤋
Just give her a reciept. IRS is not going to come after you for taxes owed on $20. They have bigger fish to fry.
2006-09-11 12:42:05 · answer #4 · answered by curious1223 3 · 0⤊ 0⤋
You are not affected atall.
2006-09-11 10:56:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋