i need tax help?

Question

I need tax help?
i am a sub contractor and i primarily work for another paint company, however i do work on the side as well that i would like to claim on my taxes. now i can put it in as additional money my business made that i did not receive a 1099-misc but the question is do i need proof of that income. for all of it i either received cash or personal check that i cashed at the payers bank so i have no proof of that income. can i still claim it? i dont need any body to ask dumb questions like why would i want to do that i just need this question answered thank you very

Answer 1

You can claim it. The that you received the money is the fact that it is in your bank account. Since you want to pay taxes on it, if you are audited, the irs consider the fact that you are an independent contractor.

Answer 2

I am an MD. I am not a tax expert but I do get involved a lot in tax matters. As I understand it, the great and powerful Federal Government requires you by law to report ALL of your income and then pay tax on it. It does not matter one whit whether you have any 1099's or W-2's or anything else or not. You MUST report ALL of your income. These things like 1099's and W-2's are only designed to catch tax cheats, i.e. people who do not report their income. But if you are honest and report it, then who cares? The IRS certainly doesn't care. They just want all of your income reported through some means or other and then taxed properly. In my business I get a percentage of my gross revenue as cash. I MUST report it along with all of my other income, otherwise it would be tax fraud. Believe me, if you report income and then pay tax on it, the IRS is happy as a clam. Even if the income is fake and you pay tax on it, the IRS is happy as a clam, believe me. However, it is indeed a crime to submit a tax return that you know to be untrue, even if you are paying more tax as a result. I hope this helps.