It is categorized as "extra compensation" and reported on my W-2.
Uh, yeah. Definitely NOT reported on my W-2. When Big!Boss proposed the idea, his wife (who takes care of all the [shifty] accounting) told us, "You'll need to take care of the taxes yourselves." But they don't issue 1099s for it. Ever.
On of the "rules" we have hear is that it can't be just more of your regular work, though. That is, if you are a secretary, you can't get extra comp for being a secretary in another department.
And well, it's *exactly* more of my regular work.
Fuckity. I just don't want the IRS to nail me for tax evasion.
Fuckity. I just don't want the IRS to nail me for tax evasion.
Don't they have a form for "Income I was paid where my employer failed to give me a W-2 or 1099"?
In any event, as long as you do what the IRS says for this situation, it's not your problem.
In any event, as long as you do what the IRS says for this situation, it's not your problem.
Uh, I don't know WHAT the IRS says for this situation. Probably b/c it's so. fucking. shifty.
Don't they have a form for "Income I was paid where my employer failed to give me a W-2 or 1099"?
Apparently so. It looks like a pain in the ass, though. Among other things, you have to explain what you did to obtain a W-2.
[link]
Can you consult with an accountant? That might be your best bet here, in order to cover your own ass.
Tep, if you email me with all the details you've posted here I can forward it to my dad (who is a tax lawyer).
Uh, I don't know WHAT the IRS says for this situation. Probably b/c it's so. fucking. shifty.
I believe the IRS generally frowns on under-the-table income, which is pretty clearly what they're trying to do. Seriously - they've put you in a really shitty situation by doing things this way.
Tep, if you email me with all the details you've posted here I can forward it to my dad
Thanks, Jess! I'll put it all together and e-mail you shortly.
Seriously - they've put you in a really shitty situation by doing things this way.
And if I report the income -- no matter how it's categorized -- won't it end up screwing THEM, b/c it'll make the IRS go "Wait a minute...."?
And if I report the income -- no matter how it's categorized -- won't it end up screwing THEM, b/c it'll make the IRS go "Wait a minute...."?
I would think so, though it make take a while for it to filter through the IRS. Like, years.
But I agree. Your employers are putting you in a completely unfair position.
won't it end up screwing THEM, b/c it'll make the IRS go "Wait a minute...."?
Yup. They're probably hoping you'll be all, "Woohoo! Free money!" and they won't report it and you won't report it and everyone gets out of the taxes.
Although, IIRC, if it's less than $600, they nor you have to report it. I think.