Have a Tax Question? Ask a Tax Expert
Hello, thank you for your question. My name is XXXXX XXXXX I will be happy to help you tonight
How are you doing?
Doing well, thank you!
Unfortunately, regardless of whether or not you received a W-2, this amount should have been claimed as income on your taxes. You will have penalties assessed for underpayment of taxes.
Your boss, on the other hand, will have siginificant penalties because he did not timely file or remit payroll taxes.
He will have steep penalties to the IRS for this
so if I have penalities, does it make sense he should pay them? What about not asking for my withholding?
Unfortunately, he would not be liable for your penalties because you still should have claimed the taxes regardless.
Are the penalities stiff for me? What if I disagree how much he says he paid me?
What about the withholding? Don't I have a choice what that will be?
The penalties aren't that bad for you. And your withholding just deals with how much money is put back for taxes at year end. You do have a choice to a certain extent, but it wouldn't matter after the end of the year when you paid your taxes.
If you disagree with the amount that he says he paid you, you would need records proving what he did pay you and all you would do is claim that amount as income and show the IRS your records showing what you were paid.
he also said I could now claim unemployment for the time after I worked for him,,,does this make any sense?
If you were laid off, and were not working then yes - you would be unemployed
He is now getting current with payroll taxes
but does unemployment pay a year later for that period of time?
No you would not typically get retroactive unemployment. You could always try and file, but I've never heard of that
I guess it wouldn't hurt to apply just to see. Worst case they say no and you're still the same as you are now.
yes, true. I thought if a person made less than $8500 they don't have to file, is this true?
What year are you talking about? (it depends on the year I'll have to calculate)
because I didn't
If you made less than the standard deduction and personal exemption then you're fine
sorry I don't understand that.
If you made less than $9750 then you do not have to file
So, if you made less than that you have nothing to worry about. There will be no penalty and no tax due
and if he reports I made 12,000 for example, I just have to file for $2250 of income? (I dont know what he reported until I get the w2)
Yes, that would be correct and your tax would be very low...like $225
ah whew but does the irs put me in a bad catagory?
No. They are not worried about that little amount
You have nothing to worry about. You should be in good shape
ok that helps. If I have another question after I meet with him and get my w2 can I get in touch with you again?
Yes, just come back to this page.
But, before you leave tonight please rate me positive so that I can get credit for assisting you today
you've been great of course I will
Thanks so much!
welcome thank you.
The rating feature is along the bottom of your screen and 3-5 stars/smileys gives me credit