Reporting "under the table" income

#4 01-22-2005, 07:07 PM

Ian Pilcher <i.pilcher[at]comcast.net> writes:

- quote -

> My wife is a Peruvian citizen, who has been in the United
> States since January, 2004. She did not receive her
> Permanent Resident card (green card) until November, 2004.
> She worked illegally for about 1 month in April/May, 2004,
> and was paid $480. No taxes were withheld from this
> payment.
> How should this income be reported on our (joint) 2004
> Federal Income Tax return?

The same way as legal income. IRS doesn't care whether it's
legal or not; they just want their cut.

Phil Marti
Clarksburg, MD

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#3 01-22-2005, 06:48 PM

- quote -

> My wife is a Peruvian citizen, who has been in the United
> States since January, 2004. She did not receive her
> Permanent Resident card (green card) until November, 2004.
> She worked illegally for about 1 month in April/May, 2004,
> and was paid $480. No taxes were withheld from this
> payment.
> How should this income be reported on our (joint) 2004
> Federal Income Tax return?

Report it on Schedule C-EZ if she was self-employed, and
also Schedule SE. If she worked for what amounts to wages,
she should complete Form 4137 to pay her share of social
security and Medicare tax and report the income on line 21
of Form 1040.

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: tom[at]tomhealycpa.com, since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772

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#2 01-22-2005, 06:28 PM

"Ian Pilcher" <i.pilcher[at]comcast.net> wrote:

- quote -

> Trying again with a different subject.
> My wife is a Peruvian citizen, who has been in the United
> States since January, 2004. She did not receive her
> Permanent Resident card (green card) until November, 2004.
> She worked illegally for about 1 month in April/May, 2004,
> and was paid $480. No taxes were withheld from this
> payment.
> How should this income be reported on our (joint) 2004
> Federal Income Tax return?

I would put on the line on page 1 of the Form 1040 that says
Other Income and explain it as Fees.

Wayne Brasch, CPA, M. S. Taxation

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#1 01-22-2005, 06:08 PM

Ian Pilcher wrote:

- quote -

> Trying again with a different subject.
> My wife is a Peruvian citizen, who has been in the United
> States since January, 2004. She did not receive her
> Permanent Resident card (green card) until November, 2004.
> She worked illegally for about 1 month in April/May, 2004,
> and was paid $480. No taxes were withheld from this
> payment.
> How should this income be reported on our (joint) 2004
> Federal Income Tax return?

Report it on Form 1040 Schedule C-EZ. She can deduct all of
her ordinary and necessary business expenses she incurred to
obtain that income. I am assuming you will be filing a joint
tax return.

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01-22-2005, 05:49 PM

"Ian Pilcher" <i.pilcher[at]comcast.net> wrote

- quote -

> My wife is a Peruvian citizen, who has been in the United
> States since January, 2004. She did not receive her
> Permanent Resident card (green card) until November, 2004.
> She worked illegally for about 1 month in April/May, 2004,
> and was paid $480. No taxes were withheld from this
> payment.
> How should this income be reported on our (joint) 2004
> Federal Income Tax return?

Report this as Earned Income (Schedule C or C-EZ) in her
name and SSN or ITIN.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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#-1 01-21-2005, 02:37 PM

Trying again with a different subject.

My wife is a Peruvian citizen, who has been in the United
States since January, 2004. She did not receive her
Permanent Resident card (green card) until November, 2004.

She worked illegally for about 1 month in April/May, 2004,
and was paid $480. No taxes were withheld from this
payment.

How should this income be reported on our (joint) 2004
Federal Income Tax return?

Thanks!

--
================================================== ======================
Ian Pilcher i.pilcher[at]comcast.net
================================================== ======================

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