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The IRS will definitely bother you if they figure out you have unreported income. Will they find out? Maybe not if it’s a few hundred or even a few thousand dol
by SoftTalker 1y ago
The IRS will definitely bother you if they figure out you have unreported income. Will they find out? Maybe not if it’s a few hundred or even a few thousand dollars. More than $10K? Then it gets more likely. If a client sends you a 1099 then they’ll certainly know.
- phendrenad2 1y agoReporting income from freelancing is no more difficult than reporting income from your day job. So we're left still mystified what mbirth was talking about.
- digi59404 1y agoThey’ll know because in the US and abroad the banks send the balances and transactions to the IRS. I get letters every year/6 months that I’m subject to additional withholding because they haven’t gotten any $$ but they show I have.
- SoftTalker 1y agoAFAIK only transactions over $10k are reported, maybe different between personal and business accounts?
- salawat 1y agoReporting to tax authorities by banks/financial institutions was bumped down to any receiving of an amount in excess of $600 during the Biden admin.
- SoftTalker 1y agoAh yes, I had forgotten about that. That's for "business" transactions, IIRC. I wonder how they distinguish....
- salawat 1y agoThey don't. It was targeted at screwing the poor rather than the rich.
- carlosjobim 1y agoConsidering he is doing it for free, it won't be more than a few thousand dollars. And he can report it and pay tax on it if he pleases.