Taxes on Income?

Question

My husband is a police officer and has many off-duty jobs on the side to help make a little extra money. One job he has is doing security at a church. Since, he only makes below $300 a month, the church will not withhold money on his paycheck. Obviously, you have to pay taxes on this income, right? Also, what ideas do you have for getting the church/or us to fix this?

The church issues a 1099.

Answer 1

You may not need the church to do anything.

Yes, the income is subject to income taxes, and self-employment taxes. However, you also have the opportunity to apply deductions that could reduce the taxes applied. These might include milage to the church and back, meals on the job, or other costs.

If your chief concern is oweing money, you could increase withholding from your husband's other work to compensate for the difference. $3,600 is not a very difficult amount to offset.

Answer 2

If you are that worried about it, your husband can adjust his W-4 to have extra taxes taken out. However, I wouldn't worry about it too much because that money is being taxed at the 25% rate which is only $900 in taxes for the year.

Does the church issue your husband a W-2 or a 1099? If its a 1099, then he can try to write off some of his expenses as a business.

Answer 3

The IRS only really cares about getting their money in April.
As long as you report all the income and pay the extra tax (if any),
you should be okay. If you're still in doubt, talk with a good tax accountant.

Answer 4

If they file a 1099 form to the IRS reporting money paid to your husband, your stuck.

If will not get a 1099 form, then your only option is to cash each check at the bank on which it is drawn.

If you ever to get audited they will go by your bank deposit monthly statements.

Answer 5

Ask the church to keep the money as your tithe. You won't be sorry:)