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Financial Planning / Tax Strategies


Subject:  Re: Basic Tax Question Date:  2/23/2014  6:20 PM
Author:  vkg Number:  120192 of 129503

She also said that because he didn't have permission to have a job on the books until he turned 18 (and therefore worked for 3-ish months under the table) that if the IRS comes after her that she will say he lived there AND she'll get him in trouble for working under the table. (Seems like if he was her responsibility that would come back on her, too. I imagine it would mostly screw his employer. He had this job for a couple of weeks while he was still living with her, not just after he left.)

At times it costs a little money to remove people who are destructive from your life.

He should declare the cash income, and pay the taxes. It takes the wind out of her threats. Other than you shouldn't commit tax fraud, it is really bad to have someone obnoxious knowing you have done something illegal. The IRS isn't going to care about whether or not he had her approval to work before he was 18.

If he really does want to cause her issues, he can then file his return stating he cannot be claimed as a dependent. It won't make much difference on his taxes. She has claimed EIC which can be significant. It is going to cause her pain for him to be disallowed as a dependent.

A possible compromise is for her to pay his additional taxes (apparently around $40), and the two of them never to speak again.
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