Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
If not a professional, but getting paid, do I have to claim it? If yes, how?
Old 03-08-2007, 04:05 PM   #1
Thinks s/he gets paid by the post
Fireup2020's Avatar
 
Join Date: Feb 2007
Posts: 1,186
If not a professional, but getting paid, do I have to claim it? If yes, how?

Here's the lowdown:

My disorganized housemate wants to pay me to organize her office, set up all online bill pay accounts, organize her properties etc... (and get her 2003-06 tax stuff organized to send to her tax professional - yes, it is truly a disaster!) I LOVE this kind of stuff - but could never do it for a living - how do I keep the invoices, etc straight for my tax purposes? Can I sneak it all under the table? Or just have her deduct it off my rent? I am really not sure what the tax ramifications are for this.

Thanks!
__________________

__________________
Make no mistake, my friend, it takes more than money to make men rich. - A. P. Gouthey
Fireup2020 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: If not a professional, but getting paid, do I have to claim it? If yes, how?
Old 03-08-2007, 04:09 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Mar 2006
Location: Houston
Posts: 2,155
Re: If not a professional, but getting paid, do I have to claim it? If yes, how?

Did she ever reported to the IRS about paying you for the service?
__________________

__________________
Sam is offline   Reply With Quote
Re: If not a professional, but getting paid, do I have to claim it? If yes, how?
Old 03-08-2007, 04:25 PM   #3
Thinks s/he gets paid by the post
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 2,398
Re: If not a professional, but getting paid, do I have to claim it? If yes, how?

Legally, if she pays you for the service, you should report it as income and pay income taxes on it. That would be true even if she "paid" you by discounting your rent.

Practically speaking, if it's a one time thing or if she pays you cash and she doesn't provide a 1099 to the federal government, you'd likely float under the IRS radar like all the babysitters and lawnmowing kids and all the folks not paying use tax on their internet purchases. Then all you have to consider is your personal ethics and organizational skills in keeping track of the income.

If you're going to do this for a lot of clients or make a lot of money at it, you may want to look at setting up a Schedule C sole proprietorship. Plenty of info out there on the web.

2Cor521
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is offline   Reply With Quote
Re: If not a professional, but getting paid, do I have to claim it? If yes, how?
Old 03-08-2007, 04:26 PM   #4
Thinks s/he gets paid by the post
Fireup2020's Avatar
 
Join Date: Feb 2007
Posts: 1,186
Re: If not a professional, but getting paid, do I have to claim it? If yes, how?

I have been messing with this for 4 hours since yesterday. Probably another 60 -80 hours or so to go...over a period of 4 weeks...
__________________
Make no mistake, my friend, it takes more than money to make men rich. - A. P. Gouthey
Fireup2020 is offline   Reply With Quote
Re: If not a professional, but getting paid, do I have to claim it? If yes, how?
Old 03-08-2007, 05:26 PM   #5
Recycles dryer sheets
 
Join Date: Jul 2005
Posts: 423
Re: If not a professional, but getting paid, do I have to claim it? If yes, how?

I think if it is under $600, it doesn't have to be reported, but going off memory here....
__________________
Olav23 is offline   Reply With Quote
Re: If not a professional, but getting paid, do I have to claim it? If yes, how?
Old 03-09-2007, 04:02 PM   #6
Recycles dryer sheets
 
Join Date: Nov 2006
Posts: 77
Re: If not a professional, but getting paid, do I have to claim it? If yes, how?

If you aren't going to report it, then you probably shouldn't post messages about it on a public website.
__________________

__________________
Anansi is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Don't forget to claim your part of the $10,000,000,000 refund mickeyd FIRE and Money 1 12-26-2006 01:58 PM
Paid off home- Now where should extra money be invested ?????? Foodeefish Young Dreamers 8 11-15-2006 09:09 PM
Web Site for Calculating Cumulative Dividends Paid Over Time? terminator FIRE and Money 3 09-20-2006 03:43 PM
Rental Car Liability Claim BigMoneyJim Other topics 12 05-18-2006 01:24 PM
Expected returns? Professional Advisors? Edgar FIRE and Money 30 04-15-2006 02:27 PM

 

 
All times are GMT -6. The time now is 03:29 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.