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Paying income taxes with an "under the table" job.

I am a college student in California, and I had to take on a job to help with my student fees and living expenses. Only problem is that my new boss insists on paying me under the table. He is a close family friend and I couldn't report him to the authorities, but I would rather not put myself at risk either. It is a fantastic Job and I make a good salary so leaving it is practically out of the question. So my question is how do I pay my income taxes?

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Even if your employer does not give you a 1099 you need to file and pay taxes on your income.
Your employer is probably paying you "under the table" because he does not want to do the book work and pay the employment taxes he is suppose to. But even if he is not doing what he needs to do it does not mean you should not either. You will be considered self employed for tax purposes and will file a Sch C, as a sole proprietor. You will owe federal, self employment and State tax on your income. If you have expenses in making this money you should keep track of them. I would suggest you find a tax professional who will be able to explain your tax situation and reporting obligation. It may be tempting to just ignore the whole thing but you will be cheating yourself, you will want to get a job after you graduate, you will need to have some work history. Also to get credit you need to be able to show a tax return. And if I still have not convinced you: I know the IRS gets really cranky when people don't pay what they owe.

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You can file as self-employed, however he would still need to issue you a 1009 (misc income) form at the end of the year.

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You don't.... Why do you need to ???

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