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June 6, 2019
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I was paid under the table, received timecards and copies of my checks, but nothing else from the employer. I have 2 kids. I didn't pay any taxes. Will I owe if I file?

  • June 6, 2019
  • 2 replies
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Best answer by Critter

No matter what the bottom line will be you MUST file a return if you earned income even if it was "under the table"....

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income.  So you need to keep your own good records. Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center 

Publication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf 

Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf 

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf

2 replies

Critter
CritterAnswer
Employee
June 6, 2019

No matter what the bottom line will be you MUST file a return if you earned income even if it was "under the table"....

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income.  So you need to keep your own good records. Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center 

Publication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf 

Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf 

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf

Employee
June 6, 2019

What Critter#2 says is completely correct.  As to whether you will owe when you file: you could owe or you could get a "refund".  You will certainly have a good deal of self employment tax and some income tax.  But you will may get a good deal of Earned Income credit and maybe of Child Tax Credit.