Question:

Is this Legal? need help (taxes)?

by  |  earlier

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Ok my brother had a job to create a website for this company, now he asked me to create a Logo for it, so i did. i got payed $400 by my brother, he said he will just deduct it from his total earnings.

now i need to write jobs that ive had recently on a form, for record. so i need to inform them of this, so who do i write as my employer? technically i didnt really pay taxes because my brother just deducted it from his soon to be earnings, i dont think this would be tax evation as long as hes aware of it and we had a word of agreement. but i still dont know who to write as an employer, or do they have a term for it?

i just need to know how i would proceed to tell them info about this job without me looking like i was tax evading.

thanks

1 hour ago - 3 days left to answer.

Additional Details

oh and that company said he will pay him exactly $400 for the logo

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4 ANSWERS


  1. Try the facts:  You created a logo that demonstrates your artistic ability.  Any tax liability is irrelevant.


  2. I would put your brother.  If you put the company, and they call the company to verify, and the company has never heard of you, then it will look like you lied.

    If you do not tell whomever gets the form that you did not pay taxes, then it will not look like tax evasion to them.

  3. Well, yes, it IS tax evasion, since you earned the money and didn't report it or pay tax on it.  Your brother got the money originally from the company but then deducted it as an expense since he paid it to you.  You are required to report it on your tax return.

    But as to your question on who to put as employer, I'd put the name of the company you did the logo for.

  4. You can word it any way you wish. Assuming this was a one-shot deal, you haven't done anything wrong. Income less than $600 from a single source does not have to be claimed on your taxes.

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