Is it true that cab drivers don't have to report their income to the IRS?

Answer 1

There is a lot of bad information in the other answers to your question. You must report all income to the IRS. However, if you make below a certain amount, you may not owe taxes. Usually, if you are in that range, and under the age of 65, you will qualify for the earned income credit (EIC). People who get EIC are in a negative tax bracket. That is, they receive money back even if they didn't pay any estimated taxes or have any tax withheld from their pay.

Answer 2

That is false. A person must report all income to the IRS unless its under a certain amount of money. The IRS knows how much money a person makes because an Employer reports to the IRS how much their payroll is unless its under the table, which you are supposed to report to the IRS. If you don't report income to the IRS, they will most likely audit you. If they find that you didn't pay them, you will have to pay them possibly by having a garnishment on your future wages.

Answer 3

That sounds like a nice idea. The IRS does not require you to report any income under $400.00 in one year. Otherwise, you must file a report. Make sure to keep track of all your cab expenses.

Answer 4

Every one has to report income..most dont. Tips are also taxed.. When some one wants to be paid in cash and doesnt give you a reciept, they are probably not reporting it..In canada we dont pay tax on lottery winnings or casino or bets at the racetrack.

Answer 5

Nope, Nyet, Non, Nein, not on your life. The only way that would be true is if Elvis and Jimmy Hoffa were both driving cabs now.

Answer 6

Hardly! Not sure where you heard that, but there's no truth to it at all.

Answer 7

No it's not true.