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  1. #1
    ralphhultin Guest

    Question

    My daughter earned $1200 delivering a weekly shopper newspaper--had no other income. If she has to report that on a schedule C, she's going to have to pay a substantial amount of income tax and self-employment tax. (She received a 1099-Misc, not a W-2.) Yet her sister, who earned $2000 in wages for part time work, gets a full refund of all her federal income tax withheld. Something doesn't seem right. Does the daughter who delivered the newspaper have to file a 1040, Sch. C and Sch. SE and pay all that tax?
  2. #2
    Taxguy Guest
    >>Does the daughter who delivered the newspaper have to file a 1040, Sch. C and Sch. SE and pay all that tax?<<

    Yes.
  3. #3
    crager34 is offline Member
    Join Date
    Nov 2000
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    351
    NO - She does not have to. Her labor is worth the exact same amount that she earned. There is not a code section in the Internal Revenue Code that would make her liable to pay Income Taxes on delivering papers. TaxGuy can't prove it..the IRS can't prove it. Why? Because there isn't any such section. You don't have to spend 25 + years to learn this either. Spend $75 on the IRS Code book and look it up.
  4. #4
    crager34 is offline Member
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    What some courts have to say...

    Income within the meaning of the 16th Amendment and the Revenue Act means, gain ... and, in such connection, gain means profit... proceeding from property severed from capital, however invested or employed and coming in, received or drawn by the taxpayer for his separate use, benefit and disposal." - [Staples v. U.S., 21 F Supp 737 U.S. Dist. Ct. ED PA, 1937] -

    The claim that salaries, wages, and conpensation for personal services are to be taxed as an entirety and therefore must be returned by the individual who has performed the services which produce the gain is without support, either in the language of the Act or in the decisions of the courts construing it. Not only this, but it is directly opposed to provisions of the Act and to regulations of the U.S. Treasury Department, which either prescribed or permits that compensations for personal services not be taxed as a entirety and not be returned by the individual performing the services. It is to be noted that, by the language of the Act, it is not salaries, wages, or compensation for personal services that are to be included in gains, profits, and income derived from salaries, wages, or compensation for personal services."
    - [Lucas v. Earl, 281 U.S. 111 (1930)] -

    "... whatever may constitute income, therefore, must have the essental feature of gain to the recipient. This was true when the 16th Amendment became effective, it was true at the time of Eisner v. Macomber Supra, it was true under Section 22(a) of the Internal Revenue Code of 1938, and it is likewise true under Section 61(a) of the I.R.S. Code of 1954. If there is not gain, there is not income ... Congress has taxed income not compensation."
    - [Conner v. U.S., 303 F Supp. 1187 (1969)] -

  5. #5
    loku Guest

    WARNING

    WARNING!!!

    Crager34 is giving very bad advice, based on a complete lack of understanding of how to do legal research. No serious lawyer of CPA would agree with that stuff.
  6. #6
    crager34 is offline Member
    Join Date
    Nov 2000
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    351
    Seems pretty simple. Find the law, read it. I did and it doesn't pertain to being a newspaper carrier.

    I will believe what you and taxguy say when you can prove it. I will challange you and question you, but if all you can do is give warnings, when I back what I say up with the law, I will not listen.
  7. #7
    Taxguy Guest
    >>, I will not listen. <<

    So WHO do you think cares ???

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