Bribes, thefts and other taxable income

Ha, ha,,, that's funny!

Hey, as long as you file, they won't arrest you. Even if you owe money.

It's when you don't file they come'n knocking on your door with handcuffs.

 

*snort* I made a measly $50 doing a temp job from an employment center once. No paperwork. All cash. Think I'm going to report that?

 

I can see it all now. Next they'll require 12-year-old kids to report for cutting grass. Or for setting up lemonade stands.

 

I think they already do that.

Don't the parents have to file for the kids????

 

Mostly for earnings like interest and such when under 14.

Years ago, during the training for enrolled agent, we were taught that even finding money on the street is supposed to be reported as income.

 

Its all a part of paying for the stimulus plan from the president. Tax the heck out of everyone and force them to try and get assistance from the government.

 

Just so you know, these rules have been in place for many years.

 

I thought, if there was a family business, and they had kids involved, they would have to report their income also...
And I'm sure you know why people do that. So they changed the law to include kids now.

Am I correct??

AH, HA,,, So you were one of those people, huh??? Forgot what they call 'em.

 

Many family business operations do in fact pay their children. However, they have to watch the under age rules for the state they are in. They also have to justify the amount for the work being done.

Alot of the times the business pays them under 3500 and funds the amount to an IRA. As long as the earnings are kept at this level, then there is no tax generated, but a return is required. Just a formality.

The income law that deals with the childs income is aimed at the moving of investment income to the children to avoid the parents higher income tax rate. They get to have 500.00 investment income at the child's rate before a return is required at the parents rate.

Many confusing rules at this type of situation.