Claiming Wages?

Question

I have a regular job with the regular salary I budget myself on and already received a w2 from my employer.

In 2006, I took some extra retail work throughout the year to supplement my income....for about 1,500, 200, and 400 in each job, so about $2,100 total. Do I need to claim this income since it is in addition to my regular salary, even though combined it is under $3,000?

If I file without them, can I amend my return later? Is this a big process to do so?

Thank you

Answer 1

You didnt mention how you were paid for these extra jobs. Were you paid in cash off the books? Im assuming you received checks from your employers and had taxes withheld from your pay. If so, you definitely need to claim this income as you would also be receiving W-2s from these places. Since the IRS has a record of all W-2s you receive, they will notify you that you did not include all your income, and may hold your money until you amend. I would wait for all the W-2s to come in, then file your tax returns. If you received cash, then the IRS has no record of this income.

If you received a 1099 for these jobs, the IRS also has record of this. You would need to report this as self-employment income on Schedule C of your 1040. You may also deduct any expenses you paid out-of-pocket for these jobs that were not reimbursed.

Im assuming you want to file asap, get your refund, then file an amendment if necessary. But the IRS may hold your money anyway, so there really is no point in filing now then amending later.

Answer 2

if you were taxed on them and will recieve a form w-2 they should be included with your regular w-2 ....if you were not taxed and are recieving a 1099misc for non employee compensation then you will file a schedule c for self -employment (assuming the jobs were pretty much the same)...or you may be able to get away with claiming it as other income...yes you can file an amended return later....its not a hard process but i can tell you as a tax preparer it will not be first priority to get it out quickly...the first reason being that nothing will pi$$ off a tax preparer quicker than having to do an amendment when there are only about 2.5weeks left before you ll get your other forms....but mainly because it is not high priority to irs ...their main concern is to get the current forms in (even though they may not be processed).....the amendment will be put on the back burner.....and yes there is a charge....if i were you i'd wait

Answer 3

You can do whatever you like; however, I wouldn't recommend doing so. I'm assuming that taxes were withheld from those employers and as such, I'm assuming that you want every dollar that you are entitled to refunded to you. Filing an amended return is not difficult although, it may take some time to be processed.

Answer 4

Yes, you do need to include them on your return.

It's not a good idea to file without them. It could end up holding up your refund if you have one coming, and you'd definitely wind up with extra IRS paperwork to do.

Answer 5

Report it all now. If you don't, you could end up with interest and penalties later

Answer 6

Report everything one time.