Hello I took on this part time job since last May and immediately they started paying me via Western Union and also Pay Pal. Never once did they ever discuss they'd be reporting wages, I always believed it was "under the table" money. They never had sign a W-9 or an independent Contractor form, nothing. Well just last week they send me an email that states that they need me to sign a W-9 form because I made over $600 with them. So basically i'm going to be taxed for the money I earned. Only prob is, I didn't hold any money over that I made, to pay for taxes. I feel very deceived and maybe this was my own naive nature. I probably should have asked from the beginning about this but never in all the jobs i've ever had, were things handled like this. Does anyone have any solutions for me? Thanks so much!

AtlantaTaxExpert

First, are you a international student, resident alien, U.S. citizen, whatever?

Second, how much money are we talking about?

Third, how old are you?

Finally, by law, they are doing the correct thing legally, so answer my questions so I can give you an estimate on how much, if any, you will owe in taxes.

adpilove

I am a U.S. Citizen, 29 yrs old, I would say its about $5000. I know I will be able to use some deductions, but this just sucks regardless. I've never had to pay EVER.

Fr_Chuck

I have to ask, how you could think you could do work, get paid and not have to pay taxes on it.

even if they did not report it, "under the table money" is suppose to be reported or you are basicly cheating on your taxes. It does not matter if they report your income on a 1099 or not, you by law are suppose to report it on your taxes.

And as a self employed people you have also the self employment tax that is included on your income.

AtlantaTaxExpert

Fr Chuck is right, of course, but I will not pile on!

Did a quick calculation. If you have NO deductions on your Schedule C (unlikely, as you had to use some of your own money for expenses), you would owe $353, ALL in self-employment tax.

You MAY want to get professional tax help, as you have to file Form 1040 with Schedules C and SE and EIC and maybe Form 4562.

If you want my help, contact me at .

adpilove

Thanks so much Atlanta Tax Expert. I have consulted with an accountant that will assist me with my taxes this year. Thanks so much.

AtlantaTaxExpert

Glad to help!