Working off the books

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birdlaw117
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Re: Working off the books

Postby birdlaw117 » Fri Jan 07, 2011 4:57 am

sarahh wrote:
ns0291 wrote:@birdlaw117- FYI I am a student, married with one child. I earn about $20k/year. For people in my situation, only income above $22,200 is taxable. So, I'm not worried about tax evasion s. The only thing is my employer pays me off the books to save himself the Workers Compensation fees and other taxes. So stop making unwarranted assumptions and I'm not asking for legal advice jerk. I like my job and I don't want to get my employer into any trouble. All I want to know his how deep law school admissions and financial aid offices delve into these matters.


Where are you getting the $22,200 figure from? According to the IRS, if you are married (filing jointly) and under 65 you are required to file if your gross income is at least $18,700. Plus, as someone else pointed out, you are supposed to pay FICA too.

I don't know this, but I'm assuming OP qualifies for certain credits (education), and the $22,200 figure is factoring that in. Not really sure, didn't care enough to crunch the numbers. But yeah, FICA, etc. is still an issue as I pointed out.

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BlakcMajikc
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Joined: Fri Oct 29, 2010 1:05 pm

Re: Working off the books

Postby BlakcMajikc » Fri Jan 07, 2011 12:22 pm

birdlaw117 wrote:
sarahh wrote:
ns0291 wrote:@birdlaw117- FYI I am a student, married with one child. I earn about $20k/year. For people in my situation, only income above $22,200 is taxable. So, I'm not worried about tax evasion s. The only thing is my employer pays me off the books to save himself the Workers Compensation fees and other taxes. So stop making unwarranted assumptions and I'm not asking for legal advice jerk. I like my job and I don't want to get my employer into any trouble. All I want to know his how deep law school admissions and financial aid offices delve into these matters.


Where are you getting the $22,200 figure from? According to the IRS, if you are married (filing jointly) and under 65 you are required to file if your gross income is at least $18,700. Plus, as someone else pointed out, you are supposed to pay FICA too.

I don't know this, but I'm assuming OP qualifies for certain credits (education), and the $22,200 figure is factoring that in. Not really sure, didn't care enough to crunch the numbers. But yeah, FICA, etc. is still an issue as I pointed out.


Wouldn't FICA be an issue with the employer (not the employee)?

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birdlaw117
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Re: Working off the books

Postby birdlaw117 » Fri Jan 07, 2011 2:48 pm

BlakcMajikc wrote:
birdlaw117 wrote:
sarahh wrote:
ns0291 wrote:@birdlaw117- FYI I am a student, married with one child. I earn about $20k/year. For people in my situation, only income above $22,200 is taxable. So, I'm not worried about tax evasion s. The only thing is my employer pays me off the books to save himself the Workers Compensation fees and other taxes. So stop making unwarranted assumptions and I'm not asking for legal advice jerk. I like my job and I don't want to get my employer into any trouble. All I want to know his how deep law school admissions and financial aid offices delve into these matters.


Where are you getting the $22,200 figure from? According to the IRS, if you are married (filing jointly) and under 65 you are required to file if your gross income is at least $18,700. Plus, as someone else pointed out, you are supposed to pay FICA too.

I don't know this, but I'm assuming OP qualifies for certain credits (education), and the $22,200 figure is factoring that in. Not really sure, didn't care enough to crunch the numbers. But yeah, FICA, etc. is still an issue as I pointed out.


Wouldn't FICA be an issue with the employer (not the employee)?

You both pay it. They just take it out of your paycheck.

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BlakcMajikc
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Joined: Fri Oct 29, 2010 1:05 pm

Re: Working off the books

Postby BlakcMajikc » Fri Jan 07, 2011 8:51 pm

birdlaw117 wrote:
BlakcMajikc wrote:
birdlaw117 wrote:
sarahh wrote:Where are you getting the $22,200 figure from? According to the IRS, if you are married (filing jointly) and under 65 you are required to file if your gross income is at least $18,700. Plus, as someone else pointed out, you are supposed to pay FICA too.

I don't know this, but I'm assuming OP qualifies for certain credits (education), and the $22,200 figure is factoring that in. Not really sure, didn't care enough to crunch the numbers. But yeah, FICA, etc. is still an issue as I pointed out.


Wouldn't FICA be an issue with the employer (not the employee)?

You both pay it. They just take it out of your paycheck.


So aka your W-4... still seems to be your employers problem, they take it out of your paycheck. But, that's just my opinion. Didn't go digging in the IRS site.

sarahh
Posts: 610
Joined: Wed Sep 08, 2010 2:36 pm

Re: Working off the books

Postby sarahh » Fri Jan 07, 2011 9:38 pm

Even if he does qualify for credits, that does not affect the filing requirements. The employer is responsible for withholding FICA from the paycheck, but if they fail to do so, I am not sure if that means they are responsible for paying the whole amount. To the original poster, you may have problems with financial aid. The FAFSA asks about your adjusted gross income, and many schools want you to provide a copy of your tax return. You can also randomly be selected for verification by the Department of Education. Lying on FAFSA and leaving off the income is a bad idea. Why not at least talk to an accountant about what you can do to straighten this out?

ItsMyTimeBoston
Posts: 228
Joined: Tue Oct 19, 2010 5:55 pm

Re: Working off the books

Postby ItsMyTimeBoston » Fri Jan 07, 2011 10:50 pm

I worked at a tax based law firm for several years. OP is in a tough situation. My simple advice would be to make sure your FAFSA matches your tax return only because school's are going to ask for copies of your return. If you haven't filed tax returns I would leave the income at zero on the FAFSA.

Straitening this out would raise problems for both OP and possibly OP's employer. It would mean that both of you would have to file amended tax returns for the previous years + penalties and back taxes. Furthermore, it would likely raise a red flag and the IRS may want to audit your employer, which would be unpleasant and quite costly.

The best idea is to make sure everything--your return and FAFSA--match on paper and don't worry.

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dextermorgan
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Re: Working off the books

Postby dextermorgan » Fri Jan 07, 2011 11:06 pm

birdlaw117 wrote:
ns0291 wrote:@birdlaw117- FYI I am a student, married with one child. I earn about $20k/year. For people in my situation, only income above $22,200 is taxable. So, I'm not worried about tax evasion s. The only thing is my employer pays me off the books to save himself the Workers Compensation fees and other taxes. So stop making unwarranted assumptions and I'm not asking for legal advice jerk. I like my job and I don't want to get my employer into any trouble. All I want to know his how deep law school admissions and financial aid offices delve into these matters.

You're still knowingly helping someone evade taxes. So you're still aiding in the theft of money. I'm not seeing much of a difference. Sorry, you're in the morally wrong here.

ns0291 wrote:

Will they/can they report me or my boss to the IRS?

Any advice, comments, or suggestion will be greatly appreciated.
Thank you!

Oh, and you were asking for legal advice.

Fucking christ you are stupid and annoying.

ns0291
Posts: 24
Joined: Tue Dec 14, 2010 5:53 pm

Re: Working off the books

Postby ns0291 » Sat Jan 08, 2011 12:32 am

sarahh wrote:
ns0291 wrote:@birdlaw117- FYI I am a student, married with one child. I earn about $20k/year. For people in my situation, only income above $22,200 is taxable. So, I'm not worried about tax evasion s. The only thing is my employer pays me off the books to save himself the Workers Compensation fees and other taxes. So stop making unwarranted assumptions and I'm not asking for legal advice jerk. I like my job and I don't want to get my employer into any trouble. All I want to know his how deep law school admissions and financial aid offices delve into these matters.


Where are you getting the $22,200 figure from? According to the IRS, if you are married (filing jointly) and under 65 you are required to file if your gross income is at least $18,700. Plus, as someone else pointed out, you are supposed to pay FICA too.


Standard deduction for MFJ= $11,400
Personal Exemption for three people (wife,son, and self)= 3650*3= $10950
11400+10950=$22,350= Non-taxable income
I make less so I am not required to file. And I do qualify for a modest return but I have reasons why I don't file for it.

ItsMyTimeBoston
Posts: 228
Joined: Tue Oct 19, 2010 5:55 pm

Re: Working off the books

Postby ItsMyTimeBoston » Sat Jan 08, 2011 1:07 am

ns0291 wrote:
sarahh wrote:
ns0291 wrote:@birdlaw117- FYI I am a student, married with one child. I earn about $20k/year. For people in my situation, only income above $22,200 is taxable. So, I'm not worried about tax evasion s. The only thing is my employer pays me off the books to save himself the Workers Compensation fees and other taxes. So stop making unwarranted assumptions and I'm not asking for legal advice jerk. I like my job and I don't want to get my employer into any trouble. All I want to know his how deep law school admissions and financial aid offices delve into these matters.


Where are you getting the $22,200 figure from? According to the IRS, if you are married (filing jointly) and under 65 you are required to file if your gross income is at least $18,700. Plus, as someone else pointed out, you are supposed to pay FICA too.


Standard deduction for MFJ= $11,400
Personal Exemption for three people (wife,son, and self)= 3650*3= $10950
11400+10950=$22,350= Non-taxable income
I make less so I am not required to file. And I do qualify for a modest return but I have reasons why I don't file for it.



If you and your husband together earned more than $18,700 you MUST file a tax return.
If your husband files separately you MUST file a return if you earned more than $3,650.
If you earned $400 or more from self-employment activities you MUST file a return.
Furthermore, there are several other things that trigger the necessity to file.




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