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The IRS would view this transaction as either a gift or a loan, not as income. If you have no intentions of paying it back it would be considered a gift. Either way, the IRS does not allow a taxpayer to arbitrarily include a loan or gift as income on their tax return. The IRS allows a person to gift another person up to $14,000 in 2016 without requiring that a gift tax return be prepared.
You said above that adding this $9,000 would get you more back. It works just the opposite, if you receive $9,000 and their is no tax withheld from that $9,000, the IRS hits you with a tax as does the state you live in, if it is a state that has an income tax. Not only that, the IRS would look at the $9,000 that you earned doing things around your mother's home and also assess what's called self-employment tax which is another 15%. Anytime they see income that was not from an employer or financial institution, they assume it is for work done by the individual and asses a self-employment tax to cover social security and medicare. I wish I could advise you as far as a trick to use, but the facts are the facts.
The IRS would view this transaction as either a gift or a loan, not as income. If you have no intentions of paying it back it would be considered a gift. Either way, the IRS does not allow a taxpayer to arbitrarily include a loan or gift as income on their tax return. The IRS allows a person to gift another person up to $14,000 in 2016 without requiring that a gift tax return be prepared.
You said above that adding this $9,000 would get you more back. It works just the opposite, if you receive $9,000 and their is no tax withheld from that $9,000, the IRS hits you with a tax as does the state you live in, if it is a state that has an income tax. Not only that, the IRS would look at the $9,000 that you earned doing things around your mother's home and also assess what's called self-employment tax which is another 15%. Anytime they see income that was not from an employer or financial institution, they assume it is for work done by the individual and asses a self-employment tax to cover social security and medicare. I wish I could advise you as far as a trick to use, but the facts are the facts.
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