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My job paid me in cash, they did not withhold any taxes, my return is several thousand dollars, is this correct?

 
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My job paid me in cash, they did not withhold any taxes, my return is several thousand dollars, is this correct?

We can't see your details, but it is almost definitely wrong, especially if you are using turbotax free version as indicated by your user icon.

If you are an employee (your employer sets work rules, sets your hours, and controls how you do your job) then your employer is paying you illegally under the table.  Without a W-2, you can report your wages using a substitute W-2 form.  You will owe 7.65% of your wages in social security and medicare tax, with no deductions allowed.  If you are single making over $10,300, you owe 10% income tax on the amount over $10,300, and you owe 15% income tax on the amount over $19,000.

You might qualify for earned income credit and the child tax credit if you have dependents, and that might equal more than your tax owed.  You need to be very sure about entering your income.  You put your wages in box 1 of the W-2 form in your employer's name and then on the page for special circumstances click the box for "I did not receive a W-2."

Or you might be self-employed as an independent contractor.  This involves you working for someone else but setting your own hours and work rules for how you work.  When you are self-employed you are required to keep your own accurate records of income and expenses.  You should get a 1099-MISC form if an employer pays you more than $600.  You need to enter your income and business expenses.  You pay 15% self employment tax on your net profit, and you pay 10% or 15% (or more) income tax on your income after personal deductions.  You can't prepare a self-employment tax return with the Free version of Turbotax.  Depending on your income, you might get more credits back than you pay, but it will be rare.

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3 Replies

My job paid me in cash, they did not withhold any taxes, my return is several thousand dollars, is this correct?

Did they send you a W-2 or 1099-MISC?

My job paid me in cash, they did not withhold any taxes, my return is several thousand dollars, is this correct?

Several thousand dollars refund or tax due?  How did you enter the cash income?

My job paid me in cash, they did not withhold any taxes, my return is several thousand dollars, is this correct?

We can't see your details, but it is almost definitely wrong, especially if you are using turbotax free version as indicated by your user icon.

If you are an employee (your employer sets work rules, sets your hours, and controls how you do your job) then your employer is paying you illegally under the table.  Without a W-2, you can report your wages using a substitute W-2 form.  You will owe 7.65% of your wages in social security and medicare tax, with no deductions allowed.  If you are single making over $10,300, you owe 10% income tax on the amount over $10,300, and you owe 15% income tax on the amount over $19,000.

You might qualify for earned income credit and the child tax credit if you have dependents, and that might equal more than your tax owed.  You need to be very sure about entering your income.  You put your wages in box 1 of the W-2 form in your employer's name and then on the page for special circumstances click the box for "I did not receive a W-2."

Or you might be self-employed as an independent contractor.  This involves you working for someone else but setting your own hours and work rules for how you work.  When you are self-employed you are required to keep your own accurate records of income and expenses.  You should get a 1099-MISC form if an employer pays you more than $600.  You need to enter your income and business expenses.  You pay 15% self employment tax on your net profit, and you pay 10% or 15% (or more) income tax on your income after personal deductions.  You can't prepare a self-employment tax return with the Free version of Turbotax.  Depending on your income, you might get more credits back than you pay, but it will be rare.

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