This is a multi-part message in MIME format. ---------------------- multipart/alternative attachment My question is: US-specific QUESTION: I am working on my college-age son's income tax return. Last summer, in addition to his regular summer job, he helped a friend build a deck, for which he was paid $500 cash. Unable to figure out what to do with it on a tax form, I called IRS. I was shuffled around to no less than 5 people. The last person told me: 1) file the long form, 2) record it as 'business' income, because my son would be considered an 'independent contractor', 3) he will have to pay $70 in Social Security and Medicare taxes. Is this the only way? I'm betting my son will be less inclined to help a friend in years to come with this ridiculous nonsense. Thanks for your help. --------------------------------------------------------------------------- david ingram replies: Your son should be doing his own tax return. However, he is also an independent contractor and subject to about 16% Social Security plus 15% income tax if he made enough to be taxable. Fill in a long form 1040, a schedule C (there may be expenses for driving there, etc.) and a schedule SE Because the same thing happens in Canada, he would have to fill in a T1-General, A Schedule T2124 and a Schedule 8. Hope this helps. PS: The reference to our Premier (your governor) Glen Clark's Fall From Grace involved a friend of the premier of BC. The friend, Dimitrios Pilarinos, built a deck for the Premier of the Province of BC at the same time that he had an application pending for a casino licence. Premier Clark ended up resigning over this and was prosecuted for accepting a bribe. He was found not guilty but it was a delicious scandal for years. Personally, I thought the premier was prosecuted maliciously. Sitting through several days of the actual trial confirmed my opinion. 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David Ingram of the CEN-TA REALTY Group US / Canada / Mexico tax and working Visa Specialists US / Canada Real Estate Specialists 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 (604) 980-0321 - Fax 913-9123 [email protected] www.centa.com www.david-ingram.com ---------------------- multipart/alternative attachment An HTML attachment was scrubbed... URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/1b6aca1a/attachment.htm ---------------------- multipart/alternative attachment--
