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File exempt on W4, employer withheld anyways Nevada

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  • #16
    Originally posted by LdiJ View Post
    Then you and your wife are both committing tax fraud by not including her self employment income from dancing on your tax return. There may not be any entity reporting her income to the IRS, but its sure as heck taxable income that is required to be reported.
    Didn't I say that yesterday morning?
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #17
      Originally posted by LdiJ View Post
      Then you and your wife are both committing tax fraud by not including her self employment income from dancing on your tax return. There may not be any entity reporting her income to the IRS, but its sure as heck taxable income that is required to be reported.
      If she is a dancer in Vegas, you can bet that her income IS being reported. It may take a year or five for the IRS to catch up to the fact, but you can bet they will.

      And they will come after you and they will get paid.

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      • #18
        Originally posted by antifeds View Post
        my wife is a dancer here in Vegas, so according to the IRS she has zero income.
        I doubt she dances for free, so how does it work that the IRS gives her a pass on her income?

        Originally posted by antifeds View Post
        Did my employer violate any laws?
        I don't know if they did or not, but you and your wife may have by not claiming her income from dancing.
        Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.

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        • #19
          http://www.irs.gov/irm/part20/ch01s14.html#d0e30206

          20.1.7.3 (11-16-2007)
          Failure to File Correct Information Returns IRC section 6721

          1. For information returns or statements, a penalty may be imposed for filing returns:
          1. After the due date,
          2. Without all required or correct information, (including missing, incorrect and/or not currently issued TINs),
          3. On paper when required to be filed on magnetic media, or
          4. When filed on magnetic or electronic media, in a manner which does not allow them to be processed or be read by machine (not processable).

          2. The penalty for information returns is $50 per return with a maximum of $250,000 per calendar year. This amount is subject to the reductions and limitations outlined in IRC 6721, 6722 and 6723.

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          • #20
            GotSmart, absolutely correct if the wife made at least $600. However, even if the company doesn't issue 1099-MISC when they are required, that doesn't relieve the worker of the legal requirement to report the income.
            I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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            • #21
              As a dancer, she does not make income. She certainly isn't profiting from anything, and as we all know income= profit or gain.

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              • #22
                [QUOTE=antifeds;988297]Kind of an odd situation, my wife is a dancer here in Vegas, so according to the IRS she has zero income. QUOTE]

                She dances for what reason?

                No tips or pay of any kind?

                Hard to believe this.

                Why does she dance in Vegas for free, when it is usually a decent paying profession?

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                • #23
                  No, income means money coming in. If she is properly classified as an independent contractor, she has the possibility of making a profit or incurring a loss in her business. But she still has to claim the money coming in, then file a Schedule C showing whether she has a profit or a loss from her business.
                  I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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                  • #24
                    She isn't an independent contractor in the sense that she doesn't receive a 1099 from the club.

                    For those claiming since she has money coming in, could you please post the definition of income as used in the Internal Revenue Code?

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                    • #25
                      Originally posted by antifeds View Post
                      She isn't an independent contractor in the sense that she doesn't receive a 1099 from the club.

                      For those claiming since she has money coming in, could you please post the definition of income as used in the Internal Revenue Code?
                      Well, she is either an employee or an independent contractor. Those are the only two options. Let me try one more time. IF she is an IC and IF the company doesn't give her a 1099-MISC for her earnings, THEY are the ones in violation of a law. If she does not report the income, SHE is in violation of the law.

                      Go to the Irs website http://www.irs.gov and look at the instructions for Form 1040 (I think it's publication 17) and the instructions for Schedule C, Self-employment income.

                      But very simplistically, income is money coming in. All of it. Income less expenses is profit. If the expenses exceed the income, it's a loss. Accounting 101.
                      Last edited by Pattymd; 08-03-2008, 04:26 PM.
                      I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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                      • #26
                        Originally posted by antifeds View Post
                        For those claiming since she has money coming in, could you please post the definition of income as used in the Internal Revenue Code?
                        http://www.fourmilab.ch/ustax/www/t26-A-1-B.html
                        "Reality is that which, when you stop believing in it, doesn't go away".
                        Philip K. **** (1928-1982)

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                        • #27
                          How about the definition of income?

                          Not gross, not taxable, just plain ol' income.

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                          • #28
                            Originally posted by antifeds View Post
                            How about the definition of income?

                            Not gross, not taxable, just plain ol' income.
                            I get the feeling you are in denial.

                            Please answer this question.
                            What does your wife recieve in exchange for dancing?




                            Income Law Definition
                            n

                            Money received for services performed, products sold, as interest on investments, as royalties on inventions or creative works, or generally in exchange for some performance or consideration.

                            Adjusted gross income
                            Gross income minus deductions permitted by the Internal Revenue Code.

                            Gross income
                            Income prior to any exemptions, exclusions, or deductions.

                            Sec. 61. Gross income defined
                            TITLE 26, Subtitle A, CHAPTER 1, Subchapter B, PART I, Sec. 61.
                            STATUTE
                            (a) General definition
                            Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items:
                            (1) Compensation for services, including fees, commissions, fringe benefits, and similar items;
                            (2) Gross income derived from business;
                            (3) Gains derived from dealings in property;
                            (4) Interest;
                            (5) Rents;
                            (6) Royalties;
                            (7) Dividends;
                            (8) Alimony and separate maintenance payments;
                            (9) Annuities;
                            (10) Income from life insurance and endowment contracts;
                            (11) Pensions;
                            (12) Income from discharge of indebtedness;
                            (13) Distributive share of partnership gross income;
                            (14) Income in respect of a decedent; and
                            (15) Income from an interest in an estate or trust.

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                            • #29
                              Originally posted by antifeds View Post
                              She isn't an independent contractor in the sense that she doesn't receive a 1099 from the club.

                              For those claiming since she has money coming in, could you please post the definition of income as used in the Internal Revenue Code?
                              She dances, get tips, she has money coming in that she is supposed to report to the IRS. It doesn't matter if she is dancing in a club with or without a W-2 or 1099 or if she is dancing on the street with no one involved but her and those that give her money for her performance. She gets money for what she does.

                              You are playing games. One day, you may lose and the previous games won won't be worth it.
                              Last edited by ScottB; 08-04-2008, 12:33 AM.
                              Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.

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