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Loren
Loren, Attorney
Category: Business Law
Satisfied Customers: 33996
Experience:  30 years experience representing clients .
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If i perform a service for someone and they pay me with a ckeck

Customer Question

If i perform a service for someone and they pay me with a ckeck for 100k+, do i have to pay tax on this money?
Submitted: 6 years ago.
Category: Business Law
Expert:  Loren replied 6 years ago.
Yes, you are responsible for making estimated payments for the taxes which will become due.
Customer: replied 6 years ago.
how do i know or find out how much tax to pay from it?
Expert:  Loren replied 6 years ago.
The following link is the 2011 federal tax rates. Figure about $28,000. Also add 12.4% for self employment tax. There will also be state tax contributions, as well.
Loren and 4 other Business Law Specialists are ready to help you
Customer: replied 6 years ago.
do i have to pay tax on checks from the government (state, county, federal) for checks of 100k+
Expert:  Loren replied 6 years ago.
You do have to pay tax on all income. So if the checks are for earned income then you will owe taxes.