I have a neighbor who I help watch her child. He is 10. She is 60 (has custody of her grandson).
Anyhow, From the moment I've watched him after school for her, I've always told her "you dont have to pay me anything". She at first was giving me checks for $50 a week, then started giving me $35 a week, now down to $30. I don't care, since I've always told her she doesn't have to pay me. I take him on the bus in the morning, and then watch him for about 3-4 hours after school until she picks him up. (There is no set price I've given her).
Anyhow, if she wants to claim that she pays me...will I get taxed for it?
First of all, I read that she would have to have me fill out a tax form (she never did). I also read that I am considered an independant contractor (since there is no set sceduale and she asks me week by week). 3rd, I never ask for a certain amount.
4th--I already did my taxes (I work at home), and didn't put down that she pays me since it is not enough anyways. My husband said she never paid me enough anyways, and 2nd, we never ask her for a certain amount and never did charge her..so she cant use me as a "employee" or whatever.
She also does not know my social security. And I dont plan on giving it to her anyways.
Anyhow...was just wondering...if she wants to try and claim me on her taxes, will this mess up my tax return? Will the IRS try to question me? Again, I always tell her EVERY WEEK--that she DOESNT have to pay me--so whatever she gives me--is her choice..(like a tip).
She is a friend by the way...was not a total stranger when she met me..in the past, I have watched him for free anyways, since she has watched our daughter occasionally if we wanted to go out on a weekend night (very rare).
She is very nice, I just don't want to get into arguments with her trying to tax me--plus I already filed my taxes.
Any advice or input?
Thank you very much :)
Asked by Anonymous at 8:12 AM on Feb. 7, 2011 in Money & Work
Answer by itsmesteph11 at 8:37 AM on Feb. 7, 2011
Answer by scout_mom at 8:22 AM on Feb. 7, 2011
Answer by Anonymous at 8:15 AM on Feb. 7, 2011
Answer by Anonymous at 8:18 AM on Feb. 7, 2011
Answer by laura970 at 8:26 AM on Feb. 7, 2011
I agree with all these ladies. Moving forward I'd stop cashing those checks. Ask her if she insists on paying you that is has to be cash only... so there isn't a paper trail leading back to you. Then it makes it harder for her to pull any funny business.
Answer by Crafty26 at 8:51 AM on Feb. 7, 2011
but what might happen if she trys to get my info and I refuse? <<-- I'd just tell her you are not comfortable giving out that info, with the possibility of identity theft if she ever misplaced the papers. She really needed to have you fill out the correct paperwork from the start if this was her intention. As another deterrent ask her if that is the case she needs to give you a W2, have you fill out an I9 form... tell her when she produces those forms you will fill in the rest of your info... chances are she won't take it any further at that point.
Answer by Crafty26 at 8:59 AM on Feb. 7, 2011