What happens if I do not file a 1099?

Question

I have been offered a job as a private nanny for a family. They want to report the income 1099, but I have never done that beofre. What happens in this case and if I take the job but not file taxes what happens?

To clarify, I am a citizen, born and raised here. The reason I ask is because I dont want to dedicate myself to this family if it is to become a financial burden for myself.

Answer 1

Regardless of how the income is reported, if you don't file a tax return yet owe tax, the IRS will likely come after you for it eventually.

The family that wants to hire you is telling you that they will not pay Social Security and Medicare taxes. This is not to your advantage. You should be an employee from your description (private nanny). Then, if you make under the income limit for your filing status, you will not have to file a tax return.

However, if you are paid on a 1099 you will have to file a tax return if you have $400 or more of net income after expenses, plus you will have to pay double Social Security and Medicare.

Answer 2

Cut the amound of pain and suffering you will be exposed to and file your return like the rest of us do. With a 1099 you simply put the gross amount on a sch C and procede from there. I believe that if you check into it you are an employee and not an independent contractor; as you are working for somebody and doing as you are ordered, when you are told to do it and etc. A 1099 is just a way to get around having to pay social security, unemployment and workmans comp insurance. And, when the powers that be decide such is the case they go back to day one and assess penalties, interest, fines and so on. This can be very expensive for the people who go this route to save a few pennies.

Answer 3

If you get a 1099 and don't mention it on your tax return or don't file a tax return, you'll get a letter from the IRS telling you how much you owe. They WILL catch it, since 1099's get reported to them and are compared to what's filed on tax returns. And it can take months or even over a year for them to catch it, and by that time interest and penalties will have accumulated so you'll owe significantly more than you would have in the first place.

Answer 4

Saying she is a criminal is a little harsh.

Anytime you receive a 1099 the IRS also got a copy of it from your employer. This is why it is a bad idea to not report the income, the IRS will eventually catch up to you.

If you make income in the U.S. you have to pay taxes on it, anyone trying to fight the IRS on that basic priciple usually loses.

Don't reject the job because you will have to pay taxes, either ask the employer to pay you 10% more to cover some of the tax bill or just pay them yourself. Everyone else does...

Answer 5

The IRS will eventually figure it out and send you a bill for the taxes due, along with penalties and interest.

BTW, you most likely not receive a Form 1099 for that income but it is highly likely that the income will be reported when your customer files their tax return and claims the Dependent Care Credit.

Answer 6

Well the IRS will file one for you, its called a sub-file, you can also call the IRS, or this company could help you if you think you are in trouble it cost nothing for them to find out for you it you are in trouble, and if you are then they can help you at a cost. I use to work for them before I became a R.O. good luck.

Omni Financial

Answer 7

then you are a criminal and will be prosecuted as such. they will file a 1099 on you and if you do not use it in your taxes,it will remain open on your end and you will be easily found to be a dishonest and law-breaking citizen. Or maybe you are not a citizen and thats why you dont want to report and you are just continuing your criminal ways and need to be arrested and deported anyway! hmmmmmm??