If I make a living working odd jobs for cash, must i pay taxes? If so, how?

Answer 1

Technically, you *must* report all income to the IRS (and any appropriate state agency if you live in a state with income tax, as well as any local agency if your city/county levies tax, yay PA, lol). You may even recieve one or more 1099 form, which gives the amount of money you earned as a "subcontractor" but didn't haves taxes withheld as an employee would. By law, 1099's have to be issued to any subcontracor that was paid $600 or more in one year from a single business, regardless of how many small jobs it took to earn that $600+. If you recieve a 1099, then the IRS will have also been notified that you earned that money.

As a self-employed individual, you would be required to file a form 1040 (you can't file a 1040-A or 1040-EZ), as well as Schedule SE (self-employment tax, also known as both the employee and employer portions of Social Security and Medicare taxes), and probably a Schedule C (or C-EZ) to show where your income came from.

That said, I would never advise anyone to report less than their total income to tthe IRS. Who supports you is none of my concern ;) And know that any social security benefits you may apply for in the future are affected by how much you pay into the system, so if you don't have SS & Medicare withheld from paychecks or don't pay the Self-Employment tax than you haven't any contributions to qualify for retirement benefits.

Here are links to the forms and schedules. The links to the instructions will follow:

Form 1040 http://www.irs.gov/pub/irs-pdf/f1040.pdf
Schedule C-EZ http://www.irs.gov/pub/irs-pdf/f1040sce.pdf
Schedule C http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
(if you can't use the EZ schedule)
Schedule SE http://www.irs.gov/pub/irs-pdf/f1040sse.pdf

Good luck :)

Answer 2

Yes, 100% of all income is taxable.

www.irs.gov
forms, schedules and all instructions - including search areas.

However, when others turn you in for not claiming all of your income, you will think you're lucky and didn't report all of it.

Then the IRS will see how much you pay for internet, computer, rent or mortgage, car payments, car insurance, food & utilities plus living expenses -

and you will be accused of fraud. And then they can audit you up to the first year you filed a tax return - and the IRS has no statute of limitations.

GOD bless us, always.

Answer 3

Yes you need to pay taxes whatever jobs u r doing. I may be a help to you if you could specify the nature of job also

Answer 4

nicklemeo is wrong, IRS can catch you even if all your income is in cash, "under the table" and no one issue 1099s to you. Are you a gambler? you can go to jail, and penalties & interest can be a bunch.

Answer 5

Not necessarily. You should, but when you do you would have to fork up all the unpaid taxes throughout the year and that can amount to thousands of dollars. There is a reason why they call the way you are paid 'under the table' - meaning, you can't report what you don't see.

hope this helps.