Received Friday, October 8, 2010
I'm about to accept a new position and I have a question about tax issues. My last two jobs paid on the books but I'm considering accepting a position with a family who wish to pay under the table. I'm going to continue to pay my taxes, but instead of having W4s to account for my income, I suppose I'll be filling out a different form now (perhaps a 1099?) as I'll be considered an Independent Contractor.
My question is: How do I report income without naming it's source? Or, if I must name the source of the income, how will that affect my new employers.
I'd really appreciate information/advice from nannies who've paid taxes without W4s or employers who have paid their nannies off the books but known about how those nannies then handled their tax situation.
(I know this will bring up a lot of righteous indignation about tax fraud. Believe me, I understand how you feel, but this post is about the reality of my current situation, not about life in a perfect world.)