as a independent contractor do you have to report what you make ?

Answer 1

Of course you do. You are responsible for FICA, if you don't pay into it you won't be eligible when its retirement time.
You have to pay income taxes, if you incorporate yourself you get special tax deductions.
If you get paid any more than pin money, or expect to be doing this as a living for a period of time you will definitely need to show the IRS some income. It will be very difficult to buy a home or get a credit card without some sort of income showing.

Answer 2

If you earn more than $600 in 1 year a 1099 will be sent to you and the Government. Legally you have to claim all your earnings. As an independent contractor you are really self employed and therefore also have to pay Social Security as well. Depending on what you are doing you will also need insurance and in some states you will need workers comp insurance. Being self employed also allows you to deduct things like phones, gas, advertising, etc that are related to the business. If you are talking about a substantial amount of income you should talk to an accountant, if it is a small number and paid in cash probably not a problem.

Answer 3

The tax law states that you are to report ALL income. However, companies are only required to send you a 1099 if you receive more than x amount (I think it's $300 or $500).

So, talk to your accountant. My suggestion is make sure you report reasonable earnings but have the proper deductions.

Here is a great book written by a guy who actually wrote some of the tax laws.

Answer 4

Hide it in a mattress. When you get a 1099, throw it out. Of course you have to pay taxes on it.

Answer 5

You most certainly do. It'll keep you from being red flagged and audited.

Answer 6

yes