Message Font: Serif | Sans-Serif
No. of Recommendations: 1
If he was a contractor he wouldn't have paid sales tax on the items he bought and used doing your job.

That must be only in some states. That is certainly not true in MA. DH pays sales tax on all the materials that he buys

The labor may or may not be taxable in CA. It is in WA.

At least in MA, labor is not taxable.

Undocumented worker.
Under the table transaction.

Neither of these, if even true, are the OP's problem. This would be the problem of the contractor as it is up to him to deal with his own taxes. The client is not responsible for ensuring that the contractor has done his duty relative to taxes.

Request for tax credit not knowing for sure if the transaction was legal.

That transaction is legal because the OP has hired a contractor and paid him for work that is being done. That's all the OP needs to be concerned about. A receipt detailing the work from the contractor is the proof that the OP needs for his taxes. If the worker is undocumented or the transaction is under the table, that all belongs to the worker and is not the responsibility of the OP in any way, nor does that change that his transaction, from his end, is legal. What the other guy does can be a different story, but that is for the other guy to handle and not the OP.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.