Tax Question

[yellowjackets89]

What is the name of your state? OH

If you work for yourself (independent contractor) and all of your income if from side jobs, do you need to claim all earning on your taxes? What are the consequences for not filing?

Is there a minimum amount that you can make and not have to file taxes?

[LdiJ]

Originally Posted by yellowjackets89

What is the name of your state? OH

If you work for yourself (independent contractor) and all of your income if from side jobs, do you need to claim all earning on your taxes? What are the consequences for not filing?

Is there a minimum amount that you can make and not have to file taxes?

If you have self employment income of more than 400.00 in any given year, you are required to report all of the income on schedule C. The consequences for not reporting the income are fairly stiff penalties and interest on the tax due, at a minimum, and if the IRS decides you were fraudulent in not reporting the income jail time could even be a consequence.

However, there is one more consequence that people overlook. If you don't report the income and pay the taxes due, you do not amass any Social Security credits, therefore you may be ineligible for Social Security (or eligible for a far lessor amount) because you did not report the earnings and pay the taxes due.

[yellowjackets89]

So regardless, even if you collect all money "under the table", you are still obligated to report that each year as income, correct (assuming it's over $400/year)?

Very interesting. My fiance is going through child support with her ex and he can not provide any documented proof of income or tax filing for the past 4 or so years....he works for himself and does all sorts of "side jobs".

[irsos]

Originally Posted by yellowjackets89

So regardless, even if you collect all money "under the table", you are still obligated to report that each year as income, correct (assuming it's over $400/year)?

Very interesting. My fiance is going through child support with her ex and he can not provide any documented proof of income or tax filing for the past 4 or so years....he works for himself and does all sorts of "side jobs".

Well, you did not mention that your fiance's ex is not reporing his income. That makes not reporting your income OK then.

[yellowjackets89]

Don't quite understand your last post,

"Well, you did not mention that your fiance's ex is not reporing his income. That makes not reporting your income OK then."

My income wouldn't come into play anyways...I report mine though