I'm being paid by check but not through payroll...?

Question

Can I still file taxes( I have a 6 month old daughter so I would like to get some money back at the end of the year....If so how....Is this even illegal?(I don't know why they won't pay me through payroll/ Im a us citizen so its not like they are hiring an illegal/.

Answer 1

You are being paid as an independent contractor, not as an employee, if they aren't withholding any taxes. Depending on your job, this might or might not be legal for them to do - see http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

You not only may, you are required to, file a return at the end of the year. This doesn't mean you'll get a refund though, you could very likely end up OWING tax instead of being due a refund. The only way you'd get money back is if you qualify for earned income credit, and the credit is larger than the total tax you owe.

Did you fill out a form W-9 or W-4 when you started work? Employees fill out the W-4, and independent contractors fill out a W-9. If they didn't give you either, it sounds like they are paying you "under the table" which is illegal for them - and if you don't file a tax return showing it, it's illegal for you also.

Answer 2

If you are using this money to file for Earned Income Credit or Child tax Credit, you'll want to have proof. Make a copy of the checks he's giving you and keep a log book of your income. If the IRS audits you, you'll be able to show the regular income you received. It'll help you out in the long run. make sure you keep the records for at least three years after April 15th the year you file. You are being treated as a self-employed person, so feel free to pick up other short term jobs as well (this also helps back up your claim). You'll need to file a return with a Schedule C and keep track of any expenses you have while earning this money (commute costs do not count, but errand milleage may be beneficial, so keep track of it). If you are unsure how to do this stuff, see a tax professional (like H&R Block). They give free advise, but do charge for preparing the return and filing it for you.

Answer 3

You really haven't given us enough info to decide if your situation is "legal" per se. I'm sure that whoever is paying you thinks that they are avoiding payroll taxes, maybe legally. The fact that they are willing to write a check to you might indicate that they feel legal about dealing with your services as contract labor. Regardless, that doesn't alter your situation. Taxable income includes all income unless specifically excluded. To be legal yourself, you will need to file taxes at the end of the year including the income taxes and payroll taxes that aren't being withheld.

Answer 4

undecided I understand the question. i'm going to objective besides. as long as you're having taxes taken out of your paycheck, and assuming that your company records a W-2 for you, the only way which you will get a tax refund is to document your tax return. it sounds like which you need to document 2004, 2005, and 2006 tax returns by ability of day after today. additionally, you may attempt to document 2003 as properly, yet once you're due a reimbursement, the statute could expire immediately because of the fact i'm undecided if Patriot's day became in consequence in 2003. even even with the shown fact that, in case you have no longer had any taxes taken out and, have not gained a W-2, you need to document and pay the taxes due because of the fact there is no statute as long as you probably did no longer document a tax return.

Answer 5

Well do they take taxes out? Social security? If not, this is seriously illegal and you can get in a lot of trouble and your employer, even more. Did you fill out federal tax paperwork when you were hired? If you don't pay taxes and you file your income tax paperwork, you will get SCREWED! You will have to pay all of the taxes that you should have paid all year, plus penalties and much more. If they do in fact pay all of the proper taxes, then you should receive a W-2 for the year in January. This is a hard situation to be in. It may come down to you needing to talk to a lawyer. There are plently of free lawyer services. Look online for someone in your area if it comes down to that.

Answer 6

First you need to find out whether you are a contracted worker or employee. If you are a contracted worker, you are responsible for you state, local, and federal taxes which will be paid by you at the end of the year. If you are an employee, you need to confirm whether they are taking out taxes. This would normally be verified through weekly pay stubs. Warning, if they are not taking out of the amount they pay you, prepare to pay the previously mentioned taxes.

If you are not reveiving over $10,000 in the year, you will probably owe no taxes other than social security and Medicare payments which are not much.

See the following website for guidelines on whether you are an employee of contactor: http://www.payroll-taxes.com/articles/art2.html
Hope this helps.

Answer 7

its income no matter how you look at it. even if your paid by personal check. file you taxes on the money.

Answer 8

FIle your taxes like you would if you had a PAYROLL CHECK.... Sounds like they are trying to not pay taxes like they are suppose to....BUT,,,FILE YOUR TAXES REGUADLESS OF HOW YOU'RE PAID

Answer 9

did you fill out a 1099 form. if so its legal. plus you could have used fake name and social #. then they cant get it at end of year. and if you did not fill out a 1099 form it is elegal.