If someone's only job(s) is off the records/books, and they have mortgages or loans to repay, how do they handle income-based repayment? If they want proof of income, how do you show it if you're off the books? Seems like a crappy scenario to me...on one hand, you are working and are making money, yet it's off the books and you're kind of penalized for it because you can't show proof of income to lower payments. And a job is a job, I don't care what anyone says about off the books/on the books. I just think it's kind of lame. :/
Daily Kitten Chat Forum » General Chat
Off the Books and in Debt...??
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There are advantages and disadvantages to working off the books. First, it's illegal. You aren't paying income taxes on the money you are earning and not being credited toward your future social security retirement income. Your employer is not paying for workers' compensation insurance which would cover you in case of an on-the-job injury. You can't verify income to satisfy your mortgage holder when it comes to seeking lower payments.
If you work a legitimate job "on the books," your taxes will be paid, you will be contributing toward your social security and you will be covered by workers' compensation. You will also have verifiable income. One thing your mortgage holder might be leery of is you getting caught and owing the IRS and New York state for back taxes. The IRS could attempt to collect what is owed by putting a lien on your home.
It's a choice.
Posted 2 years ago by Kitten Whisperer #
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Are you "off the books" or a Contractor? Contractors receive 1099 forms and are responsible for their own insurance, FICA, Income and other Taxes. You keep your own books to show income and expenses as well as depreciation of assets. So if you have a truck used for your jobs you depreciate the value against your income.
The bad news is Small Contractors and Commissioned Sales people are evaluated as unemployed for credit scoring.
Posted 2 years ago by ailuromaniac #
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Tobert...your soooo not alone. For the better part of 22 yrs. I've been a housecleaner...getting paid 'off the books'. Most all my clients were aged or elderly. There were so many in any given week (10-12) at one point in my life when I was younger & could do it). I had inquired yrs. ago about the possibility of filing taxes for the income. It turned out that it would be more of a hardship for them & for myself to try & claim a few hrs. per week/per client having so many different ones, that it wasn't claimed. Well,after our flood of 1997 here,many of them were forced to move due to loss,& some just gave up the struggle & passed away. Now,I sit here,unemployed,too young for retirement,but have health issues preventing me from working.
The point I'm making is...you really need to get back 'on the books' if possible. Like many others,I never expected to end up where I am in life at this time & I'm paying dearly for the errors of my way.
Good Luck w/whatever your choice or decision is. -
Well the thing is, the two jobs are full-time pretty much, and they aren't our final jobs...like I'm applying for random retail jobs around here just to make a buck while I do my real job, which is write, or, while I look develop a portfolio so eventually I can apply for an on the books position as some sort of editor. The same goes for my girlfriend...these jobs that are off the books were easy jobs available and she can use them as technical experience (she's a fashion design major). So I understand we won't be gaining money in our SS and what not while we're off the books, but at worse, we'll only be in this situation for two years, hopefully. But I can understand the cons outweigh the pros and we'll be trying to figure something out just so we can deal with the loan repayments in the mean time.
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I understand you situation, but you are not having any taxes with held either. 1/3 my income goes to with holdings. You don't have the with holdings. If you were on the books making whatever you make now, your take home pay would be approximately 1/3 less. You are right, there are pros and cons. In this economy so many just need work to try and hold it together. My prayers are with you that your income will continue.
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