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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 10172
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I'm a manicurist. My boss pay me half in cash and half in

Customer Question

I'm a manicurist. My boss pay me half in cash and half in checks every month. At the end of the year i will get form 1099 for only the total income from the checks. But now she want to pay me all checks and will give me form 1099 for only half the total of the checks. If i only file my tax return with only the amount on form 1099, will there be a problem?
Submitted: 1 year ago.
Category: Finance
Expert:  Lane replied 1 year ago.

.Hi,

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Yes, so sorry, but the law requires that you report ALL income.

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Now, you can certainly report it all and then, because you are an independent contractor (1099) report all of your business expenses to bring that net income (which is what's tax able) down.

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But if you report it all, only he will be breaking the law ... And the penalties for not reporting all of what he pays you are STIFF. (AND it really doesn't make sense for your boss), because putting it all on the 1099 is proof that he gets to deduct that from HIS taxable income.

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I'm sorry to be the messenger here but telling you a this is OK would not be helping you.

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Please let me know if you have any questions at all.

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Lane

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Expert:  Lane replied 1 year ago.

I hope you'll rate me positively (if you don't have additioinal questions on this) by using the stars on your screen That's the only way they'll credit me with a PORTION of what you've paid JUST-ANSWER

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Thank you,

Lane

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