Tax experts - wages earned in cash. how can tax be filed? - Sajha Mobile
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Tax experts - wages earned in cash. how can tax be filed?
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money2go
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Asking for a friend who has been working in cash/paypal balance etc (wages, gigs). He says he made about 30k. How does he go about filing taxes? He wants to pay taxes on money he made.
maxpayne
· Snapshot 133
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Companies/LLCs are required to file a 1099 if they paid someone more than 600 a year, "friend" can request the 1099 from the companies. If not put the amounts under 1099MISC.

Form 1099-MISC, Miscellaneous Income
If you do freelance work or contract labor during the year for other businesses, the IRS requires those businesses to send you Form 1099-MISC by the end of January. You should receive it shortly thereafter.
You must report all business income, including cash or barter payments, regardless of whether you receive
money2go
· Snapshot 247
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What if they were general labor/help. Such as freelance work (digital marketing for restaurants, companies that don't wanna provide anything)?
anon
· Snapshot 252
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Schedule C
money2go
· Snapshot 445
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im sorry. wht does that mean?
anon
· Snapshot 517
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Schedule C is where self employed enter their earnings and expenses in tax return.
https://www.irs.gov/pub/irs-pdf/f1040sc.pdf
money2go
· Snapshot 593
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ty
logan
· Snapshot 703
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Schedule C को लिंक त तासिदिनु भयो त्यो भर्ने कुरा चै कसले बुझाइदेला ?

मेरो बिचारमा यो वर्ष कुनै प्रोफेसनल ट्याक्स भर्ने ठाउ मा जादा बेस होला कि ? अर्को बर्सको लागि १०४० र तेस्को इन्स्ट्रक्सन डाउनलोड गरेर 2-३ पल्ट दोहोर्याएर पढ्नुस र नबुझेको कुरा साझामा टाष्नु भए अहिले सहयोग गरि रहनु भएकाले अबस्य पनि तपाइलाइ बुझाइ दिनु हुन्छ ?
मैले तपाइको ट्याक्स भर्ने काम मा स्वबलम्बि हुन खोज्नु भएकाले १०४० इन्स्ट्रक्सन पढ्न सल्लाह दिएको हु अन्यथा नलिनु होला |
Sexy In Sari
· Snapshot 728
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That's fine, it seems your friend is a responsible person. BUT when there is an issue of money, a calculation is important before you open your mouth.

Remember, on 30K, he/she has to pay State tax besides Federal Tax(IRS) as well.
Lets do IRS tax:
30K, single, 2020-deduction is 12,400: estimate you will owe $1,914
Now, State tax ( ex. Maryland ) : Estimated State Income tax: $1,126

Your total tax: $ 3,040 If you don't pay full penalties and Interest...Are you ready?

Now if he/she says made 22k...State tax (as MD example) $746 and IRS tax $960 , total is = $1,706 

When you make cash, you are the one who is going to put the number in IRS mouth. 
Last edited: 14-Mar-21 02:41 PM
maxpayne
· Snapshot 846
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Your "friend" better get a LLC registered. This will allow him to deduct resonable expenses before paying taxes on income. Thats the whole point of schedule C.
anon
· Snapshot 1031
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You do not need to register LLC to deduct expenses. LLC provides you liability protection.
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