My employers are paying my in cash and not claiming me as an employee on their taxes, so do I still have to claim this income on my taxes? I work another job in a restaurant and obviously file those taxes. I'm just not sure what i have to do about this nanny job.
2006-11-02 09:51:02 · 9 answers · asked by J_M_N103 1 in Business & Finance ➔ Taxes ➔ United States
If you are earning more than $400.00 from being a nanny, you have to claim it and pay self employment tax on it. You will report this using schedule C and Schedule SE in addition to your regular 1040.
2006-11-02 10:18:27 · answer #1 · answered by RamsGod 3 · 1⤊ 1⤋
An employer has to get an EIN and use that when they give you your W-2. A nanny is ALWAYS an employee. if she's saying you aren't, then you have a problem. You should file a form SS-8 with the IRS come February 1st if you do not get a W-2 (and made more than $1800 in 2012). Then you file your taxes by using form 1040 and 8919. That way you only pay your share of fica/mc and taxes (the amounts she was supposed to be withholding) and not hers. Reconstruct what you've been paid and file. Let her deal with the SS-8 form (the IRS will contact her for her side of the story). In theory, you could print out IRS publication 926 and give it to her with your W-4, and a schedule H for her 1040, but she probably wouldn't get the point. The reason she wants your SSN is she plans to claim what she paid you as childcare on her tax return. LET HER. This reinforces your claim that you are an employee of hers. (her comment about the credit being limited is true, but it doesn't change what she paid you.) PS photocopy the checks before you cash them.
2016-05-23 21:19:35 · answer #2 · answered by ? 4 · 0⤊ 0⤋
This is one of the most common things that a nanny thinks of as a "perk". BUT - you are legally obliged to report all income. If you don't make enough to pay taxes on it - you at least have to report it. If you don't report it and are audited - you'll be paying for it for a long time. So, save yourself the trouble, do the right thing, and report it. Although, it's also your employer's responsibility to report it and take the proper taxes out for you.
2006-11-06 06:44:44 · answer #3 · answered by Anonymous · 0⤊ 0⤋
RamsGod Is correct. Technically, you should claim the income even if it is less than the $400 that requires the self-employment taxes. But, if you have no other income, that amount would be below the minimum amount to require filling or owing regular income tax.
2006-11-02 13:16:40 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
You are required by law to pay tax on all income earned even if the employer does not claim it. If they pay you they shouldbe reporting the payments to the government and they should be paying one-half of the social security and medicare tax on your earnings. You are hurt by failure to report in the long run.
2006-11-02 22:52:06 · answer #5 · answered by waggy_33 6 · 0⤊ 0⤋
Just double check to make sure that they are not filing a Federal Schedule H or any state quarterly payroll tax forms. If they aren't, then the government has absolutely no record of you making this money.
2006-11-02 12:52:59 · answer #6 · answered by Anonymous · 0⤊ 3⤋
No that's called "getting paid under the table", which is actually the best kind of job to have. You get to keep everything you earn!! You don't have to pay taxes for things that you don't use.
2006-11-02 10:20:56 · answer #7 · answered by suzieh212006 2 · 1⤊ 3⤋
By law, you must report all moneys earned and/or received.
2006-11-02 10:00:04 · answer #8 · answered by Anonymous · 0⤊ 1⤋
Yes, you must claim it.
2006-11-02 09:56:54 · answer #9 · answered by Wayne Z 7 · 1⤊ 1⤋