Taxable?

[glinka]

First of all I think this is wrong. But, a friend said he was doing part time work for a small shop. The deal is thry are going to pay him with check that is under $600. They told him no one has to report it that way. They claim it's not illegal. I can't see this, he claims it will be the only outside money he get's besides Soc. Sec. He also claims they can do it with his wife getting a under $600 check. Is this crazy or does he just want to justify it?

 

[theloneranger]

I would rather be paid in cash, which is just as good as money and less traceable than a check.

 

[FUEGO]

For 1099 "employees", payment under $600 doesn't require reporting from the employer's side. It is still income to the one receiving payment. And it is not under $600 per check, it is under $600 total for the tax year per person.

Not sure about whether w-2 employees must be reported on for amounts under a certain threshold. I guess if there is no reporting then there is no w-2.

See disclaimer below.

 

[freebird5825]

Cash is King.

Otherwise, better to claim it if there is a paper trail involved.

 

[Texas Proud]

For 1099 "employees", payment under $600 doesn't require reporting from the employer's side. It is still income to the one receiving payment. And it is not under $600 per check, it is under $600 total for the tax year per person.

Not sure about whether w-2 employees must be reported on for amounts under a certain threshold. I guess if there is no reporting then there is no w-2.

See disclaimer below.

If you paid someone as am empolyee, then you withheld SS... you must report no matter how little...



Edit.... and I think I will be getting a W-2 from my old employer... have some restricted stocks where I get 38 cents a quarter... which is considered 'income'....