Should i accept tax or no tax?

Question

Hello, Im 17 and currently got hired at a dog kennel. This would be my Second Real job ever. My boss said he would pay me however i wanted which means either through an accountant that will take taxes out and i get a check, or by cash upfront no tax taken out. In the long run, which would be better to do?

Answer 1

You need to find out if your boss is filing a 1099 for you if he pays you with cash, a 1099 basically informs the IRS of the money he is paying you.  This would mean that he could pay you cash but you would still be responsible for the taxes at the end of the year and you would be listed as self-employed, which means you would have to file a Schedule C on your taxes.  If he is paying you under the table with cash and not reporting it on a 1099 that is illegal but likely the best case scenario for you.  The risk of being caught is extremely low and I would not file taxes on it, but if you are extremely ethical and don't want to worry, you would still file a Schedule C.  Usually filing self-employment with Schedule C will result in higher taxes than if they take the taxes out unless you have deductible expenses for your job.  Also, many people like to get refunds and are not good savers and tax savvy, so almost always I would recommend them giving you a W-2 and taking the taxes out if your other option is a 1099.  

Answer 2

Well of course you would make more money if taxes aren't taken out initially, but you would be responsible for filing for the taxes on your own at the end of the year.  Which would leaving you owing money to the government.  If you chose not to file taxes on it, it could also leave you in big trouble if the IRS ever found out.

Your best bet will probably be to have him take out taxes now, and avoid owing in the future.  Good luck!

Answer 3

cash...you dont want them to take taxes out so you dont need to file taxes...its easier too b/c you dont have to deal with banks and all that stuff that can arise out of that