If I was paid by personal check for working as an assistant, can i pay taxes?

Question

I worked last year as a personal assistant/organizer on weekends and days etc, but I was not an official employee to anyone. I was paid by personal and im pretty sure I made over $8,600. I am 18 and filing FAFSA things for school and am worried about taxes now. Does anyone know of anything that could help me, or atleast explain to me if I would get in trouble for not paying taxes on money I made? I was under the assumption that I could just fill out a form and write a check at the end of the year, but apparently thats not the case. I am kind of worried about it, anyone have any knowledge on the subject? Thanks a lot

Hey everyone, thank you so much for the answers. They made me feel much better, however, just because I dont report it, does that mean that mean when I file FAFSA, they will not examine by bank accounts and wonder where all my money came from? Thanks again, your answers are very appreciated.

Hey Paladin,

Thanks for the answer. I definitely do not want to fool with the IRS, that is why I am asking this question, because now I realize that I am in a tight spot. I know for a fact that I will not get a 1099 from my employer. I have no contract. Would I be allowed to name myself an independent contractor now, after receiving payments? And just to clarify, there is no way for me to just fill out a form and send a check? Thanks again everyone for the answers and your time.

Again thanks for all the answers. I just want to make clear that I am looking to take care of everything in the proper way, not try to cover it up. Thanks, I hope to get a few more responses as I am still quite worried about this

Answer 1

If you were paid directly by someone without them filing you as an employee, than you would not receive a W-2 from them, and as such the IRS would have no clue about the wages. Technically you are supposed to report that income to the IRS and pay for Taxes and Social Security to be taken out of your check, however at your income level you would basically only be paying Social Security.

The IRS doesn't know unless you tell them. Technically as long as the jobs were "independent" of each other and less than $600 dollars, they are exempt from being reported to the IRS by the employer. It would be up to you to report it if you chose to do so.

In reality most people never report this sort of income. (Disclaimer: I'm not suggesting you should avoid paying social security, I am just letting you know what most people you're age do.) :)

If your employer did report the taxes, you would be receiving a W-9 from them. (If you didn't fill out an I-9, you won't be receiving this)

Answer 2

It's very simple. You will need to file a form 1040 and include the income on a schedule C. You can deduct your expenses and will pay tax only on the net income (income minus expenses). You can take 48.5 cents per mile if you used your car on the job. That's only one expense. There are many. You will have to pay self employment tax on the net income on schedule SE. Many people freak over this but it is your social security. Many may not like this answer, but you need to pay it.

I would not trust Truckerkid's answer (no offense) only because I find it hard to believe that a company who paid by check (paper trail) will not want to claim an $8600 expense. You should ask the employer when he will be sending you a 1099MISC.

I had a friend who always showed enough expenses to avoid the SE tax. Then he got ALS (Lou Gherig's disease - terminal) and could not get social security disability. It was a very bad situation. So don't be afraid to pay the SE tax. You'll be fine and if you have any questions, you can call H&R Block and talk to a tax preparer who will be happy to answer your questions for free.

Good luck!

Answer 3

Because you are a student under 24, your parents may still claim you, if this is so, then FAFSA will use your parents last year's income (also, just a hint, because some will not file until after Jan 31, you can check "estimate" on the FAFSA form.)

If you are not a dependent of your parents, that income is for a Schedule C. Self-employed. You can expense a lot pertaining to that income (what ever you spent to make $$). Talk to a tax professional to help with your outcome.

Answer 4

The right answer is that you need to include that money on your taxes and on your FAFSA. If the government can show that you knew the law and willfully failed to report the income, they will assess fraud penalties and interest. If you merely overlooked the item or didn't know the tax consequences, you would merely be charged with underpayment penalties and interest. If you choose to report the income you are entitled to deduct any expenses you incurred due to that activity. If you receive an IRS Form 1099 MISC, the IRS will for sure know about the payments, call and find out if the employer is issuing you one.

Answer 5

Get a No Cost Background Check Scan at https://bitly.im/aNCFv

Its a sensible way to start. The site allows you to do a no cost scan simply to find out if any sort of data is in existence. A smaller analysis is done without cost. To get a detailed report its a modest payment.

You may not realize how many good reasons there are to try and find out more about the people around you. After all, whether you're talking about new friends, employees, doctors, caretakers for elderly family members, or even significant others, you, as a citizen, have a right to know whether the people you surround yourself with are who they say they are. This goes double in any situation that involves your children, which not only includes teachers and babysitters, but also scout masters, little league coaches and others. Bottom line, if you want to find out more about someone, you should perform a background check.

Answer 6

I agree with Fran B. Just want to add a piece. If you were paid by check, you should report that income as an "Independent Contractor", and while you would still be liable for all taxes, Federal and State, you could deduct, in addition to your regular expenses up to $20,000 for a SEP (Self employed IRA).

The downside is that you "employer" would have to send a Form 1099 to you, or to protect yourself, have a signed contract "for services" which indicates a rate of pay "for the project".

Don't fool with the IRS, they are the people that put Al Capone away.

Answer 7

The IRS does not have to catch you directly, if they audit the person who paid you they will see checks to you and bingo you will be caught. My advice is go to IRS office, to Taxpayer Service for free advice. Even if the payor did not treat you as an employee IF the facts are such you may be an employee and the payor would be liable for your tax. You can fill out form SS-8 and IRS will rule as to whether or not you were an employee. If you are not an employee then you are an Independent contractor and liable for the taxes on your earnings. If it turns out you owe tax and can not pay it you may be elligible for an Offer in Compromise where you settle with IRS for less than total you owe. WHENEVer you talk to IRS get/save name, title and PH # fof

Answer 8

They are suppose to send you a form 1099. If they don't estimate how much you made. You would file a Schedule C and off-set your income with any expenses you incurred (e.g., auto costs, mileage, etc..) Go get Turbo Tax and prepare your return. H&R Block will screw you over with their cost and incompetence.

While it may go under the radar if they don't send you a 1099, how much is your honor and ethics worth? Think about it.

Answer 9

Congrats on wanting to do this right. Basically you do need to file a tax return. The income from your personal assistant job will be business income (schedule C). You can deduct any expenses should as paper, mileage, gasoline, etc against this income. So you were told correctly, but it is more like a couple of forms.

Answer 10

if you were paid by personal check then the taxes were not reported to the irs. that is your choice to include them on your tax return. according to the law you are supposed to. Most people do not and if there was no report of the income to the irs by the employer then they will never know