Tax Return Help!?

Question

I was unemployed most of the year, so broke I had to ask for a deferment on my student loans. But I did work for four months only last year as a babysitter, and I earned less thatn $10,000 for the whole year. Now I'm going back to school this year, need to file my tax return for financial aid purposes, but I don't have a W2 because I was paid in cash by the people I babysat for. Can I still file a return?

Answer 1

Doublecheck that you have to file a tax return for financial aid purposes. Most schools will waive it if you sign off on a form saying you did not file taxes and the reason why--probably because you made so little and was under the amount required to file tax. If you make less than a certain amount than you don't have to file income tax. Not sure what the figure is but it's close to 10,000.

However technically the money is self-employment money which you are supposed to report and pay self-employment taxes on--and at the 15.3% without a lot of deductions, you're screwed. Honestly, I'd just write off filing taxes because you made under the amount required to file. The chances of the IRS finding out are very very small. Plus the people who hired you may not be happy because they're supposed to give you 1099s if they paid you more than 600 in a given year.

Answer 2

You are leagally suppose to file tax return as you earned more than minimum filing requirements. Again people with whom you worked are also supposed to pay nanny taxes and hope they are saving on it by paying you in cash. If you file and report them as the source of income, better inform them so that they will be prepared to for it.

Answer 3

You should file a return and report the babysitting wages. That income will be considered self-employment income, so you will be subject to self employment tax on it, however, your federal income tax liability on that income should be fairly minimal, since the standard deduction and personal exemption should wipe out most of the income. Also, if you incurred any out of pocket expenses related to the babysitting business, you could deduct that to reduce the amount of income subject to self-employment tax.

Answer 4

They would need to give you a 1099 form to file. Call an accountant or the IRS

Answer 5

Yes you can file. You'll owe self-employment taxes on the money - that's 15.3%, in addition to any income tax that might be due.

Answer 6

I would go and file that return at a local H R block office...they would be more than willing to help you.

Answer 7

i wish i'll trade you my $450 bill for your return

Answer 8

If you earned money, YES