My employer does not have an accountant set up yet so he gives me personal checks every month for the last 6 months. This income will not be on my W2 as he's giving me checks. I want to show these checks as a part of my income (for health insurance purposes). How do I show these checks as a part of my income? How do I process these checks in my tax return? (I am not self-employed nor I own a business) Thank You.
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Ok .. not having an account or payroll company is no excuse for doing the payroll improperly ... either you are an employee per the IRS regulations OR you are self employed filing a Sch C to report the income and pay SE taxes (FICA) since this "employer" is not paying anything. https://www.irs.gov/taxtopics/tc762
Type 1099-misc in the Search box and then select the Jump to link. This will take you directly to the section where you can enter your 1099-MISC. You’ll also be able to enter any cash, personal checks, credit card payments, or cryptocurrency (Form 1099-K) related to your self-employment.
Type Schedule C in the Search box and then select the Jump to link. This will take you to where you can enter any cash, personal checks, credit card payments, or cryptocurrency (Form 1099-K) related to your self-employment. You may first be asked some general questions about your business. After you answer them, you’ll be taken to the Let's get income for (your line of work) screen where you can enter this income as Additional Income.
Despite the fact that you say "I am not self-employed nor I own a business", s far as the IRS is concerned that is what your are, unless you want to get your "employer" in trouble for not treating you as an employee and remitting payroll taxes.
The IRS considers undocumented cash income (no W-2 or 1099-MISC), for work performed, to be self employment income. Enter at "Business Income & Expenses" and TurboTax (TT) will complete Schedule C or C-EZ for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security & medicare tax) on any profits greater than $400. You report the income from your own records.
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