Funding IRA no 1099 given?

[q10]

I did independent contract work for a company/ couple. It was a mom and pop farmers market job. I was paid in cash every few days. I never received a 1099 from this company/ people. Another person has their phone number now. None of this really surprised me. It was super informal. Am I still able to fund my IRA/Roth IRA, even though I have zero evidence I actually worked? Is there a way to fund an IRA on a tax return without any documentation or evidence of where the money came from?

 

[quincy]

I did independent contract work for a company/ couple. It was a mom and pop farmers market job. I was paid in cash every few days. I never received a 1099 from this company/ people. Another person has their phone number now. None of this really surprised me. It was super informal. Am I still able to fund my IRA/Roth IRA, even though I have zero evidence I actually worked? Is there a way to fund an IRA on a tax return without any documentation or evidence of where the money came from?

Do you still live in California, q10?

 

[Taxing Matters]

I did independent contract work for a company/ couple. It was a mom and pop farmers market job. I was paid in cash every few days. I never received a 1099 from this company/ people. Another person has their phone number now. None of this really surprised me. It was super informal. Am I still able to fund my IRA/Roth IRA, even though I have zero evidence I actually worked? Is there a way to fund an IRA on a tax return without any documentation or evidence of where the money came from?

Well, let's see. The tax law effectively requires that YOU keep records of your income and report that income on your federal income tax return. You should have been keeping records of each payment you received, perhaps using a computer accounting program or accounting ledgers, like organized business people do. Those records are important not just for tax purposes, but also for determining just how well your business is doing so you can manage it effectively, can show lenders or investors how the business is doing, etc. If you have the records of your income then you have what you need to report your income on your federal income tax return. You don't need a 1099 for that. The income reported on your tax return is what will support that you had earned income to qualify you for the IRA.

While quincy routinely asks everyone for their state, in this instance the question is one of federal tax law and the state doesn't really matter.

 

[quincy]

... While quincy routinely asks everyone for their state, in this instance the question is one of federal tax law and the state doesn't really matter.

My post was also a less obvious way of telling forum members that q10 has posted here before. The posting history is, um, interesting.

 

[FlyingRon]

In 40+ years of doing independent contracting, I've never had to show anybody the 1099's I received. And yes, you're obligated to report income whether 1099'd or not (not all contracts even require 1099s to be issued).

 

[davew9128]

One of the great urban myths, if its not on a 1099 its not reportable and taxable.