I work part time for someone who pays the taxes. Am I required to file on what he pays me? Is this double ta

Question

I work part time for him and he pays me most of the time by check. I keeps about 1/3 of his payment from the jobs for tax purposes. I work full time, but this is the first time with a part time job on the side. If I include it, will this be considered double taxation? I don't want to be audited, as I am sure that the occassional large deposits in my account (average around $400 - $500) would raise a red flag with the auditor, and most likely drag my boss into it. I'm really trying to cover my hind end on this. Any information is appreciated. I would say the total amount is about $2000 - $3000 for the year. Thanks.

Answer 1

Your boss may be paying taxes on what he makes but you are still required to pay on your earnings. You can file and use this income as self employment income then you can also use the deductions that come with it, business expenses.

Answer 2

If your boss takes taxes out of your check then you should get a W-2 just as you do on your full time job. Then all you have to do is file it as you would your full time job. It's not double taxation and the deposits will not raise any red flags. If an audit happens it's not because of an additional job or deposits. It would be a "Random" audit which could happen to anyone. If you still don't feel comfortable I would definitely consult a tax preparer like H&R Block or another reputable preparer.

Answer 3

Lots of people work under the table and don't claim it on their taxes, however if he is paying you by check it's harder to get away with it.
Generally anything you make over $600 should be claimed, but usually you'll get a W2 or a 1099 form.
I think you can get away with not claiming it. It's a small amount anyway you can probably claim ignorance if you got caught and the worst they will do is make you pay the taxes you owe and a small penalty. I made a mistake on my local taxes a few years ago and had to pay more, the penalty was only 7% of what I owed.

Answer 4

Your question is less than clear? If you have a full time job that you get a W-2 for and taxes are withheld; and you have a part-time job that is classed as contract labor; then we are singing from the same sheet of music. For the part-time job you need to fill out a sch C-ez to put with your return for the 2 to 3K. On the sch C-ez you put down any expenses to find out your taxable net. This is added in with your w-2 income on the face of your form 1040. You will also owe SE tax (FICA) on your self-employment income, which you figure out on a form SE and include with your form 1040.

Answer 5

US Constitution, Article VI, paragraph 2: This Constitution, and the laws of the United States which shall be made in pursuance thereof ... shall be the supreme law of the land; and the judges in every state shall be bound thereby, anything in the Constitution or laws of any State to the contrary notwithstanding. If that's not real enough for your "friend," then maybe a cold prison bed will be real. Political authority comes from the ability to back it up with punishment. Always has, always will.

Answer 6

You should be reporting the income and paying taxes on it. It is not considered double taxation since your boss is taking a deduction for the amount of money he is paying you.

Answer 7

All payments made by check and all cash you "keep for tax purposes" are taxable. Income tax, social security and medicare tax are all due and are figured on your income tax return.

If you are not an employee then you file as self-employed and expenses of this job are deductible on Schedule C.

Answer 8

you must claim it on your taxes. It's the law.

Thank you for working.