I have a friend from England that came to the US, and her client paid for the trip. However, her client put the 2 checks for $2,000 each in my name. I have letters from both of them stating the money was never mine, and also have the paperwork from Western Union that proves I gave her the money. I was wondering if anyone knows if I'm going to end up having to pay taxes on this money because she is going to give me the money for the taxes if I do? If I do have to pay taxes, does anyone know how to figure out how much the taxes would be on $4,000? I live in Florida if that makes any difference. Any help anyone could offer would br greatly be appreciated. Thank you.

:confused:

This is no problem.

Don't mention it in your own tax return at all and you have nothing to worry about.

Some might suggest showing it as income then showing it as expense somewhere else to cancel it out, but if it were me I'd just not mention it period since it wasn't my money to begin with.

Angelgirl610:

Rickj is correct. There is no audit trail that shows you received the money, so the IRS has no way of knowing you got the money unless you tell them about it.

Keep the information off your tax return and you will be fine!

Thanks for the advice. I feel a lot better about it now. :)