Legally speaking, not logically speaking, is it legal to be a homeless people and to beg for money like that? And if it is, are they legally supposed report any income and pay taxes on it? I know none of them do it, but are they legally supposed to do it, since you are technically supposed to report any income. Is there a written exception for them?
2007-03-19 13:59:45 · 9 answers · asked by randomdude 3 in Business & Finance ➔ Taxes ➔ United States
If your income is above the filing requriement amount a tax return must be filed. The law doesn't make any allowance for someone who does not have a fixed address. As a practical matter, most homeless folks probably earn less than the amount where a tax return is mandatory so it's not an issue.
You are NOT required to report "any" income, only if your income is above the filing requirement. For a single taxpayer, that would be $8,450 for 2006.
Money received from begging IS treated as a gift since there is no expectation of any benefit on the part of the donor so it isn't taxable to the recipient. Therefore if that's their sole source of "income" they have no tax liability.
2007-03-19 15:48:38 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
There was a legal case a couple of years ago in which homeless people wanted the IRS to consider money received from begging to be earned income so that they could claim the earned income credit. The IRS ruled that the proceeds from begging were indeed gifts and NOT earned income.
However, any income earned as wages would need to be reported on an income tax form. With a low income level, the individual would most likely get back any taxes withheld and possibly qualify for the earned income credit. But where to mail the check???
2007-03-19 14:14:49 · answer #2 · answered by TaxGurl 6 · 2⤊ 0⤋
Hi! Unless there's a local ordinance, it is legal to beg. Yes, if a person makes more than a certain amount of money in a year, they must report it to the IRS. Don't feel too sorry for the freeway beggar in the shabby clothes. I live in the Ocala National Forest and know many (yes, i said many) highway beggars. I have gone to some of their houses (bet you'd like a nice house in the forest) for pig-roasts and such, and have been told how much I would increase a few of their incomes by going begging with them...seems women elicit even more pity and cash.
2007-03-19 14:12:12 · answer #3 · answered by ciamalo 3 · 0⤊ 0⤋
I suppose that you are assuming all homeless people do not have earned income, which is incorrect. Homeless people with earned income can in fact benefit from the earned income credit and receive a refund even if they do not pay any income tax.
2007-03-19 14:07:13 · answer #4 · answered by Latigo 3 · 1⤊ 0⤋
Begging can't be considered as a job nor can their contributions received be considered as income. In this regard, the monies they received from the public are not taxable and there isn't a need for them to fill income tax papers.
2007-03-19 14:04:52 · answer #5 · answered by SGElite 7 · 0⤊ 0⤋
They could make a very solid argument that the money given to them when they're begging is a gift. It doesn't really meet the definition of income. And gifts are not taxable to the receiver, whether they're received from your mom or from a stranger.
2007-03-19 14:15:33 · answer #6 · answered by Judy 7 · 1⤊ 0⤋
They technically aren't working it's a gift if it's given to them.
If they have homes then they aren't homeless. I am assuming you mean people who are truly homeless and have no earned income.
2007-03-19 14:04:52 · answer #7 · answered by margherita 4 · 0⤊ 0⤋
I think even gifts can be taxable, otherwise we would all 'do favors' for 'gifts'. But auditing them could be a hassle. One big storm and all their paper work is ruined.
2007-03-19 15:08:27 · answer #8 · answered by locusfire 5 · 1⤊ 2⤋
what another waste of money
2007-03-19 14:02:04 · answer #9 · answered by Anonymous · 0⤊ 0⤋