Income Tax

[shishka]

So I Googled how to pay taxes and all I came up with was how to not pay taxes.

 

Curious as to how to pay taxes on caregiver income. Start a LLC?

 

How do you deal with income tax?

[Kingdiamond]

Its not listed as a taxable earning yet because we are only allowed to be reimbursed for our costs im sure we will be taxed to death once they figure out how to regulate it but for now as far as i know you cant list money earned via caregiving on your taxes maybe we will be able to write off grow expenses that we are never reimbursed for as losses when it changes to taxable income .

[shishka]

I understand there is no sales tax to be paid as a the transaction is not a sale.

 

I do believe it would be counted as income though. I don't really care about claiming deductions for expenses although that would be nice. I care more about not getting into hot water with the tax man.

 

Lets say for example you had been depositing cash weekly or monthly into your bank account, I would think it best to claim this as income. Obviously if the cash never went in the bank that would be a different story but for this example lets talk about bank deposits.

 

Anyone claiming this income?

Edited February 3, 2013 by shishka

[Restorium2]

I'm of the thinking that since it's not a sale:

 

You only need to claim income when it will be reported to the IRS as income by who ever paid it.

 

So ask your patient if they reported it to the IRS. I bet they didn't.

[Celliach]

If you get caught not claiming the money that was paid to you by your PTs then you can be charged with tax evasion.

 

There is no sales tax to be collected or paid by CGs.

[bobandtorey]

And if you our on SSD or SSI The social Security office may want to know

[Celliach]

If you're on SSDI you are allowed to make up to $750/month.

[shishka]

If you get caught not claiming the money that was paid to you by your PTs then you can be charged with tax evasion.

 

There is no sales tax to be collected or paid by CGs.

 

Exactly what I'm thinking. I don't want to finally be legal to grow and end up breaking other laws. Sounds like an accountant is in order.

[SFC]

Cash......Cash..........Cash..........Don't take it anywhere near the bank.

[+Malamute]

Doesnt everyone claim all cash they make as income on their tax forms?

 

:-)

 

Anyhow, it is merely "other income". One line.(21) Fill in your amount. Done. Well basicly. You may need to fill out a schedule C form.

 

Check with an accountant for best advice. This is not complete.

[+Malamute]

Here is the rule from IRS(I guess those classes in school stuck with me a bit):

 

　

Illegal activities.

 

Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule CEZ (Form 1040) if from your selfemployment activity.

[shishka]

Cash......Cash..........Cash..........Don't take it anywhere near the bank.

 

Well yeah, unfortunately my mortgage company doesn't want me to mail them cash so some money has to go in the bank.

 

It's legal so I don't care about paying taxes. That was kinda the point of the thread.

[+Malamute]

Well, it is not legal on your Fed taxes. ;-)

 

But you still have to(should) pay the taxes(e.g. Al Capone)

 

But i gave ya the right answer...BUT i am not an accountant. Just took some classes at college and this one stuck in my head.(i stayed at a Holiday Inn Express last night).

 

No deductions allowed also.

 

But, yea... check with a real tax person.