Expert: Shirley McAllister, CPP, PHR - 3/7/2008

Question
I was paid 1850 in "under the table" wages last year by my employer (who also paid me over 16000 in regular wages).  I would like to do the right thing and file those wages, even though I realize I may have already done the wrong thing by accepting them.  What should I do?

Answer
If you wish to claim this amount on your income taxes you can put it on the 1040 form on the spot that says other income.

You do not need a tax form to do this and you don't need to send in one with your taxes.

You will be charged taxes on the amount for both Federal and State taxes.

They will not come after your employer or after you. Nothing was sent in to the Government on the amount so they have no idea you have earned it. This is where income goes if you earn extra income from outside forms such as odd jobs, sweepstakes, or other unreported income.

It is a small enough amount that I think you will be fine, if it were a larger amount I would worry about you being audited by the IRS.


Shirley