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kakk333 | If I collect $150 from 10 random people from freelance, can it be tracked that I have not paid tax on this? |
Hello, I have recently done computer work for 10 people in the area, each job I made about 100-150.. will the government come after me for now paying tax on this? What can I do to ensure I am completely legit if ? |
 |
 
nas88caror 300
 |
you just told us .so they just find out then |
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tborelli
|
All income is supposed to be reported. Call the IRS and ask them what forms u need to report this income. You also need to contact your state tax officials. Im assuming u live in the US.
Yes it can be tracked depending on who paid you and how u were paid. If you were paid in cash maybe not. But running afoul of the IRS is VERY risky! |
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onion
 |
If you got paid by cash- you are free and clear. |
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ronnie b
|
If you want to be perfectly legal, just file it when you do your taxes. If none of the people you got the "cash" from report any of it on their taxes and you dont report it, there is no reason i can see that the IRS would even know about it. The money has been taxed from the people you earned the money. If it was me, i wouldnt claim it, just put it in the bank and forget about it. Not enuf money to fret over. The IRS needs to work on people with more than $1500. Dont sweat it. |
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cincillag
|
The minimum income you need to have to pay taxes on vary from year to year. Generally, if you make less than $4 to 5,000 per year, you do not have to file a tax return. |
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jvsconsulting
 |
It depends on several things: first of all are you incorporated? Do you operate as a "company", or are you just operating as an individual? If you're a company, you have to report your earnings to the IRS. However...
if your customers paid you in cash (or if they paid by check, and the check was made out to YOU, not your company), then the IRS would have a really hard time defining that money as "income" (even though you got a check from a total stranger, you could just classify it as a loan).
Making $1000 or $1500 over a few months in your "spare time" isn't a crime (think about kids who mow lawns or wash neighbors' cars for extra spending money). If you want your "computer work" to be an actual business, you need to incorporate yourself...look at
http://www.smallbiz.com
...they handle the details (for a modest fee) if you want to create a company. |
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mom of a boy and girl
 |
It can be tracked because the people will show on their w2form that they spent money on having a computer(for their business) repaired and by whom......
Just claim it on your tax form the next time and say you missed reporting it...You may get a reprieve! |
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normal_cody
|
its prolly not a good idea to tell everyone youve been working for cash... shhh! |
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Preppy C
 |
possibly and probably, because those that paid the money to you are going to file as business related deductions. This is how most people get caught. |
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INACTIVE
 |
If your clients are business professionals, they will claim the fees paid as professional services for tax write-offs. The odds are the IRS could find your default in the event you are audited or any of those clients. Tax evasion is not taken lightly as it is a criminal offense. I would suggest you consult your attorney and accountant to find ways to claim your expenses and income for a nice tax break and income. |
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