Scorp: Cash or Check?

[Junket]

I'm working under the table right now, and I'm wondering if I should take cash or check?

I know cash is untraceable...so should I request cash over a check from my "employer"?

I don't feel like paying taxes for this shit.

[anachronistic]

Maybe you're not asking me, but I'd take that cash.

[DoesntMatter]

FYI if you plan on depositing anything at a bank, banks are required to report any cash deposit over $10k

Hope that helps

[Junket]

Nah, it would never be that much at a time.

We're talkin' 400-500 at most.

[anachronistic]

If this money is going to be mailed, you should take the check. Security reasons.

[DoesntMatter]

Jerry Springer admittedly paid his prostitute by check. So there's an argument for that

[misombra]

it won't matter unless it's huge. you could always say it's a gift.

in order to be taxed your employer would have to add you to his payroll.

[GrkScorp]

I'm working under the table right now, and I'm wondering if I should take cash or check?

I know cash is untraceable...so should I request cash over a check from my "employer"?

I don't feel like paying taxes for this shit.

If you're under the age of 25, but under the age of 65.. and you're filing as Single.. then it would only be beneficial for you to take this in the form of cash if claiming it brings your income on your 1040 to over $12,400..

Why?

Federal Earned Income Credit (EIC)
State Earned Income Credit

They're both refundable credits (yes, that means you get money back.. even if your tax liability comes down to zero! you can actually end up filing your tax return, pay zero taxes, and actually get money..)

If this brings you above the threashold ($12,400) then you can see that it wouldn't be beneficial to a taxpayer to have to report such income.. (for example; it wouldn't be beneficial for you to report such income after you go above this threashold)

However, if you find yourself under this threashold.. then you can still report it and qualify for the credit..

If you're married, the threashold is $14,300.. if you have a child, the threashold can go beyond $20,000 and beyond $30,000 for two children.. I've never had to deal with the EIC much, but it's out there.. and the only real consideration in these cases..

Then again.. you can go under the classic theory: if you can get away with it.. and you're willing to take the audit-lottery risk.. why not?

How much are you talking about exactly?

[squirrley]

Gksp, I thought EIC was for families, you had to have at least one child to qualify? Ive been receiving EIC for the last 10 years. The less I made, damn the more I received back. Ok, theres an incentive NOT to work.

I wouldnt record it if I were getting paid in cash, especially if the employer agrees to pay in cash. Win Win for everyone! (obviously within reason)

Just researched it, guess you can get EIC without a kid.

[GrkScorp]

Just researched it, guess you can get EIC without a kid.

The numbers might be a little conservatively rounded down.. but the principles are correct.. take my word on it..

It's one of the many things I do.. Though the EIC isn't something I deal with.. leave a loophole or exception or special rule of some sort in the Internal Revenue Code, and be certain i'll have it down word for word somewhere in the back of my mind..

Tax joke: What's the name of the restaurant tax attorneys like to eat at? The Loophole.. Don't worry, I cried when I heard it the first time too.. and they weren't happy tears..

[Illusional]

ALWAYS take the cash... you have to cover your footsteps, especially when working under the table.

raverboy

[GrkScorp]

theres an incentive NOT to work.

I don't know everyone's boring-threashold, but I thought this was amusing..

Recently, the homeless in NYC are filing suit to be able to claim money they receive from begging, as income, to qualify for the EIC.. the case was thrown out, because all money received in this manner met the classic definition of a "gift", and could not classify under "earned income"..

Earned Income & AGI Limitations for 2007:

- No Qualifying Child, $12,590 ($14,590 if MFJ)
- One QC, $33,241 ($35,241 if MFJ)
- Two or more QC, $37,783 ($39,783 if MFJ)

* Cannot have Investment Income greater than $2,900.
** Cannot be a QC of anyone else.
*** Some states may not allow you to take the State/Local EIC if you were disallowed the Federal EIC for last year's return.