AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Society of Tax Professionals, and the Institute of Management Accountants.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper.
Question My boyfriend works in the construction industry. Every week he works on various side jobs and gets paid under the table. How do we claim that income so he is not taxed thousands of dollars later or audited by the IRS?
Answer Jessica,
Thanks for your question.
All of his "under the table" earnings are taxable. He will need to report this income on Schedule C, and calculate the self-employment taxes on Schedule SE.
In order to avoid paying a large sum in April, and to avoid penalties and interest, he needs to make quarterly payments of his tax liability. This is done by submitting Form 1040-ES on the 15th of April, June, September, and January. The form also contains a worksheet that will help him determine the amount of his liability.
