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Bren1999
Returning Member

Got Paid cash can they take off tax?

I got paid cash for a small job for 5 days and I’m not sure if they was right or wrong but got paid cash 525$ and they take off 10% off tax but i don’t understand if this is right or wrong I thought if you got pay cash we have to report it to our tax return they toke off 50$ It doesn’t make sense am I paying twice pr can she take tax off without me filling up a w2 form or any type of fax form???? Help me please 

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2 Replies

Got Paid cash can they take off tax?

Did you receive a W-2?  If they took out tax or Social Security and Medicare they have to issue a W-2 to you to show that, and report that W-2 to the IRS.  If they paid you in cash--how are they accounting to you or the IRS for money they withheld for "tax?"  You need to have a discussion with the person/business that paid you.  To understand---you were supposed to be paid $525 but they held out 10% of that?  if they did, they have to give you a W-2.  Or maybe they just still owe you the money they "withheld"--because if you were paid as an independent contractor, you enter the amount you earned on your own tax return and pay self-employment tax yourself.  Your are right--they don't get to have it both ways.  Either you were an employee or you were not.

 

https://ttlc.intuit.com/questions/2584365-am-i-an-employee-or-an-independent-contractor

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Carl
Level 15

Got Paid cash can they take off tax?

I assume you were paid this cash in 2020. You should be issued a W-2 showing the tax withheld. If you are self-employed, then that W-2 would have the "statutory employee" box checked.

If you have a paystub that shows the withholding, then you're good and can fully expect to get some kind of tax reporting document for this, by Jan 31st of 2021.

 

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