Sam
Lv 6

Question regarding taxes?

I was paid in cash for work, I only worked this year so it hasn't hit tax season yet, I just need some clarification if I was paid cash and was an unreported employee can I still legally pay my taxes normally before April 15?

Update:

I'm US by the way I like the old format.

Update 2:

@ Valley I just checked the thresholds and I made way less than the minimum for my age group and single status, does that mean I don't have to file?

8 Answers

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  • 7 years ago
    Favorite Answer

    "Additional Details

    I'm US "

    "I was paid in cash for work"

    You MUST file a tax return if your income exceeded $400. This is because you were treated as an Independent Contractor and you must pay FICA (social security and medicare) as bothe employee and employer. This is a mandated tax has different limits that Income Tax.

    The question arises, were you, in fact, a contractor? The IRS has rules/guidelines regarding who is classified as "employee" and who is "contractor". One of the most important is your ability to refuse assignments.

    Employers must pay payroll taxes, the most notable the employer's FICA contribution. By attempting to classify you as a contractor, the employer is avoiding paying FICA, Unemployment and possibly even Workers Compensation.

    If you believe you have been misclassified, you may file a form with your return asking the IRS to examine your case and make a ruling. Otherwise, you owe and extra 7.65% for the employers portion of FICA on all taxable income over $400.

  • 7 years ago

    No, it doesn't mean that you don't have to file.

    The minimums that you mention are for regular employees, who get paid by check or direct deposit, with social security tax withheld, get a W-2 at the end of the year, etc.

    For a person getting paid in cash with no tax withheld, the minimum is only $400, and it does not depend on age or marital status.

  • 7 years ago

    You can and are legally obligated to pay your taxes by 4/15, like everyone else.

    There is no age group threshold, not sure what you are looking at. Your income is self employment since nothing was withheld, your threshold is $400, regardless of age.

    If it was W2 income, the threshold would be around $10K, no matter what your age.

  • NA
    Lv 7
    7 years ago

    Valley's answer is just plain wrong. Self-employment income has a filing requirement at $400. That's to ensure that the payroll taxes are paid.

    Income tax kicks in at a higher number, but the $400 rule is applied first.

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  • Bobbie
    Lv 7
    7 years ago

    1040 schedule C and the SE form for the self employment tax amounts social security and medicare taxes for the 2013 tax year REQUIRED when GROSS income is MORE than 400.00 that has been received during the tax year as a self employed independent contractor.

    Self employed independent contractor using your daily written receipt book records to report your gross income on the schedule C or CEZ along with the SE to determine your NET PROFIT or LOSS from your business income during the tax year for this purpose.

    SE your social security medicare tax amounts that you would OWE on your NET profit amount that would end up the page 1 line 12 from the schedule C and any SE tax owed page 2 line 56 and page 1 line 27 Deductible part of self employment tax attach schedule SE line 27 $$$ amount.

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  • Judy
    Lv 7
    7 years ago

    Since you were paid cash without ANYthing taken out, the limit for having to file is $400. If you made less than that, you don't have to file; otherwise you do, and will owe self employment tax, for social security and medicare. The 6100/10,000/or higher limit is for federal income tax.

  • tro
    Lv 7
    7 years ago

    in the US this cash payment to you is self employment income and has nothing to do with your age--it doesn't matter how old or young

    and this is reported on Sch C, if the 'net' amount is $400 or more you will use Sch SE and calculate your self employment tax

    since you have done this since April you have missed three quarters to report and pay your estimated taxes for 2013(the last voucher is Jan 15, 2014)

    there will be penalties and interest for each quarter you have failed to pay even if you pay the entire amount with the #4 voucher

  • 7 years ago

    Did you make enough money to have to file an return (9750)? If so, then you need to file a return and you will owe the entire amount you calculate as taxed owed. If you don't have a W-2 to go with the earnings you will probably have to report as a self employed person and also owe self employment taxes, which are the social security (FICA) and Medicare taxes that also are normally withheld. If you didn't make the minimum amount, you don't have to file anything.

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