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
You'll need to sign in or create an account to connect with an expert.
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
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.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
mombomb1963
New Member
tlnevinger
New Member
Icekitties
Returning Member
cschelzig
New Member
gxt1
Level 3