How to File Income Taxes If Paid Under the Table With No 1099

How to File Income Taxes If Paid Under the Table With No 1099

Even if you’re paid under the table with cash, you can be certain the IRS expects its cut. While there are income thresholds in place that determine at which point you must file, it is still a good idea to file taxes even if you aren’t required to do so – you may be eligible for certain tax credits and deductions. Generally, self-employed taxpayers and independent contractors receive 1099s for non-salaried work. But, if you receive income under the table from odd jobs or tips, you may still be required to file income taxes, even without a 1099.

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Must I Report Income from Under the Table Jobs?

The short answer is yes. Depending upon the source of your under the table income, you will have to fill out Form 1040EZ or Form 1040A for taxes before 2018 or the revised Form 1040 for 2018 and onwards.Which form you use is determined by your individual tax situation. You may also need to file Form 4137 to report any income you’ve received from working such as tips, that was not reported to your employer. If you’re unsure of exactly which form to file at tax time, consulting with a tax professional, or the IRS’ website, is recommended.

Who Is Required to File?

Under the table income is basically any income that you are paid for services rendered, but was not reported to the IRS by the person paying you. Employers must report and pay taxes on income paid to workers. If they fail to do so, you’re still on the hook with the IRS even though paying employees cash under the table is a crime. Under the table jobs include babysitting, yard work or bartending, and are typically jobs that pay cash.

Because all monies paid to you for any work you complete is considered income, if the amount earned falls within certain thresholds, you must report it on your taxes – even if you’re not supplied with a 1099.

For 2017 taxes, filed in 2018:

For the 2018 tax season, filed in 2019, the personal exemption has been eliminated, but the standard deduction has increased. This means that:

For the 2019 tax season, filed in 2020:

There are no exceptions to the earned income, even if you were working under the table. If you meet the income threshold, the IRS expects you to file a tax return.

Am I Considered Self-Employed?

Self-employed, contract and freelance workers are also sometimes paid under the table for work they’ve completed. The rules for self-employed workers differ from those who are considered employees. Employees have taxes withheld from their paychecks by employers, while self-employed wage earners do not; they are responsible for paying these taxes themselves.

If you’re self-employed, the income threshold at which you must file taxes is much lower. After earning more than $400 as self-employed, you are required to file an income tax return with the IRS. Self-employed individuals have more autonomy over how their job is performed, how much financial responsibility they have for their work and what relationship they have with the business.

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Tara Thomas is a Los Angeles-based writer and avid world traveler. Her articles appear in various online publications, including Sapling, PocketSense, Zacks, Livestrong, Modern Mom and SF Gate. Thomas has a Bachelor of Science in marine biology from California State University, Long Beach and spent 10 years as a mortgage consultant.