sidework and cashing checks NOT at my bank

[norcalsurfer]

oops, posted this in the wrong forum so i'm posting again. hope that is ok.

i have a question about some side work i do from time to time. i usually get paid via a check from a different bank other than mine. i'll go to that bank and walk away with cash.

when i file bk, is there any way those checks will come back to haunt me? i don't have accounts where i cash them at. they check my id but only to make sure it's me. my name doesn't go on some giant list does it?

thanks!

[kornellred]

Hiding any assets will come back to haunt you. If the entity issuing the checks deducts taxes, you will receive a W-2 at the end of the year. If you are getting paid "under the table" there will be no record of your having earned the money, and no way to prove that you did.

[norcalsurfer]

the entity issuing checks are just homeowners. i do occasional side jobs for random people. no one is issuing me a w-2.

if i don't have a bank account at the bank i cash their checks at, is that bad? they look at my id, and write my drivers license number on the check.

should i be worried?

thanks!

[BigJohn]

the entity issuing checks are just homeowners. i do occasional side jobs for random people. no one is issuing me a w-2.

if i don't have a bank account at the bank i cash their checks at, is that bad? they look at my id, and write my drivers license number on the check.

should i be worried?

thanks!

I would say a lot of people who don't want to be seen do this. They don't seem to get in trouble.

[fireworks]

I was in a similar situation when I was a college student years ago. I taught private music lessons and my students (or their parents, more often) paid me directly. I usually cashed the checks at my own bank, not even bothering to go to their bank - never reported it to the IRS or anyone else. Just put the cash in my pocket.

Now that was years ago, things have changed, and I wasn't looking at filing a bankruptcy. I'm sure that there are records somewhere that show I cashed a check (otherwise what would they do if the check came back?). The big question is who would care enough to go looking for them.

Personally, just to CYA, I suggest you report the income. You can probably find a way to exempt it. Better that, even if you lose some of it, then take a chance at losing all of it.

Better yet, ask your lawyer!

[gogetter76]

Hello,

Could you ask the people or whoever issues the checks to just pay you in cash?


Just an idea

[norcalsurfer]

some people do pay me in cash. i hate asking though. thanks for the advice, all!

[njguy1972]

you can offer a discount for cash (maybe 5-10%)

[JoeBankrupt33]

If, for some reason, you are audited in your bankruptcy case, and you list self employment income, then you will need to provide statements for your business accounts, and describe every deposit and every charge for 6 months.

Personally, I'd want to stay away from this.

I do taxes on the side, and I decided to file before I started doing business. This worked out great because I was audited, but they didn't need anything because I did no business in the previous 6 months.

If the amount does not put you over the median income, then you are not cheating anyone, but possibly alleviating headaches.

[OhioFiler]

The only correct answer to this question is "You are required to report all income during the preceding 6 months."