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| *Ostroff, Fair and Company>>>Australia Taxes |
How do I put myself 'on the books'? And can I backdate the paperwork? |
I work a few hours each week on top of study, paid cash. If I go on the books I still won't pay tax, but my employer (my stepmother) can write off my salary on her tax. I proposed to put myself on the books, do the paperwork myself, and split the tax benefit 50/50. I'll be about $15/week richer (yay!). How do I do it? Yes it is OK to backdate but really it is not backdating anything... You are reporting income received during the year. All you need is one invoice from you to your stepmother which you sign as cash received. You should date each day you received money. If the total money for the year is over $400 then you owe Self Employment tax which is 15.3 % of all money she paid to you. If your yearly income totals are more than $8200 then you will owe some Fed tax on your personal return. The employer will need to submit your soc sec # to benefit from this deduction and she will only be able to if it is a real business, not just you cutting the lawn or something similar. Good news is you can deduct your expenses you put out to earn this money before figuring SE Tax. Good Luck Considering that being off the books is illegal, all the paperwork is moot anyway, you can backdate if you want. If you earn under $600/yr, she doesn't have to even give you a 1099-MISC to get the deduction. My personal finance blog: http://www.bargaineering.com/articles... |
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