Sunday, March 3, 2013

Q&A: If I'm not employed/self employed, and only work for tips... what do/should I claim on my taxes?

Question by bruce: If I’m not employed/self employed, and only work for tips… what do/should I claim on my taxes?
I go to work for a few hours, and occasionally receive cash; that is my pay… my only pay.

Best answer:

Answer by RUSerious
If you do not receive a paycheck, in all probability, you are considered to be self-employed.

You will need to keep a log of your earnings, make periodic payments for your potential tax liability by using form 1040-ES which you can obtain on the IRS website and file an annual Federal Return using Schedule C or Schedule C-EZ which you can also access via the IRS website.

As to your State, since you did not mention where you live, I cannot advise you regarding state taxes, but as a general rule, if you file a Federal Return, a State Return is also required. Check with your State Department of Revenue regarding this subject.

Good Luck!

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Q&A: If I'm not employed/self employed, and only work for tips... what do/should I claim on my taxes?

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