GODIHATETAXES!!! why must Uncle Sam insist on taking half of my Christmas bonus!!??
12-20-2002, 03:08 PM
#24
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My non-expert opinion:
If the employer does not declare it as wages, etc. and it does not get reported to the IRS, it probably would fall into the same category as tips. Are you supposed to report it? Probably yes. Will you get caught if you don't? Probably not. Is it worth the risk? Dunno. That one's your call.
12-20-2002, 04:29 PM
#27
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Well duh... when dealing with percentage obviously it is exponential
As the income rises the more tax in total (because the percentage of a larger sum is in fact a larger amount) paid by that group will be more part of the whole.
Even if the scale was even (lets say everyone paid %10 of their gross) two people who earn $20k a year (paying $2000 in tax each, $4000) doesn't equal someone who earns $60k a year (paying 6000 in tax). So there may be many more people under the $52k mark than over, but even if the rates were static and not dependent on the income, it would still be some outstanding statistic like that..
Even if the scale was even (lets say everyone paid %10 of their gross) two people who earn $20k a year (paying $2000 in tax each, $4000) doesn't equal someone who earns $60k a year (paying 6000 in tax). So there may be many more people under the $52k mark than over, but even if the rates were static and not dependent on the income, it would still be some outstanding statistic like that..
12-20-2002, 04:32 PM
#28
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Now a question for you since you are experienced in this area
How common is it for someone not to claim something like this? What kind of punishment is involved (is this "tax fraud" per say or is this something that, if found out, would be part of an audit and need to be paid later)?
12-20-2002, 05:06 PM
#29
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IMHO, the real risk depends on how the employer reports it and therefore how it can be tracked.
I really don't have any experience in this area. I've just always been interested in tax law. (Sick, huh?).
