Serious Affidavit of Support questions! Help Please!

[trailmix 77]

All the above answers imply that she was receiving a W-2 for being a nanny and is not considered self-employed. The threshold for self employment is much much lower, not because of income tax but is self employment tax (which is social security tax). But I don't know if the USCIS cares about that, but the IRS does. My opinion, see a tax professional.

Sorry, above should say "not because of income tax but because OF self-employment tax"

See a tax professional to fill out the I-864?

I may be wrong but I think you are making this much more complicated than it needs to be.

Edited June 3, 2010 by trailmix

[ann and aties 9]

Sorry to not be clearer in my response. She is talking about writing a letter stating that she was not required to file a tax return. I'm not convinced that there was no filing requirement on her part. But I will state again. I have no idea if the USCIS cares. I just know that if she was self-employed, the IRS does care. So, advising her to look up filng thresholds as IF she had W-2 wages may not be the best advice. Full disclosure, I am a tax professional, but I no longer do individual returns, so I am NOT looking for business.

[theladynthetramp 0]

Sorry to not be clearer in my response. She is talking about writing a letter stating that she was not required to file a tax return. I'm not convinced that there was no filing requirement on her part. But I will state again. I have no idea if the USCIS cares. I just know that if she was self-employed, the IRS does care. So, advising her to look up filng thresholds as IF she had W-2 wages may not be the best advice. Full disclosure, I am a tax professional, but I no longer do individual returns, so I am NOT looking for business.

I am confused! because I know I don't have to file taxes. and is being a nanny considered self-employment?

[ann and aties 9]

Hi Lady, did you receive a W-2 from your employer?

[trailmix 77]

Sorry to not be clearer in my response. She is talking about writing a letter stating that she was not required to file a tax return. I'm not convinced that there was no filing requirement on her part. But I will state again. I have no idea if the USCIS cares. I just know that if she was self-employed, the IRS does care. So, advising her to look up filng thresholds as IF she had W-2 wages may not be the best advice. Full disclosure, I am a tax professional, but I no longer do individual returns, so I am NOT looking for business.

That's a good point, I see what you are saying. I would imagine that USCIS does care, or they would not request that you write a note stating why you were not required to file taxes.

So whether she is self employed or not is important here.

I have zero knowledge of how the IRS determines whether or not a person is self employed or not - more to it than receiving a W2 no doubt, however i'm going to drop out of this thread.

Lady, I suggest you call the IRS and give them the details, or, as ann and aties said, see a tax professional to determine what your tax situation should be. Good luck.

[theladynthetramp 0]

No, I dont have any W-2s. I guess the main question here is that could a head of a household who is self employed and didnt receive any W-2s not file taxes???

[Boiler 45,535]

Independent Contractor (Self-Employed) or Employee?

It is critical that you, the business owner, correctly determine whether the individuals providing services are employees or independent contractors. Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors. If you are an independent contractor and hire or subcontract work to others, you will want to review the information in this section to determine whether individuals you hire are independent contractors (subcontractors) or employees.

Before you can determine how to treat payments you make for services, you must first know the business relationship that exists between you and the person performing the services. The person performing the services may be -

An independent contractor

An employee (common-law employee)

A statutory employee

A statutory nonemployee

In determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered.

Common Law Rules

Facts that provide evidence of the degree of control and independence fall into three categories:

Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?

Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)

Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

Businesses must weigh all these factors when determining whether a worker is an employee or independent contractor. Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor. There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor, and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another.

The keys are to look at the entire relationship, consider the degree or extent of the right to direct and control, and finally, to document each of the factors used in coming up with the determination.

Form SS-8

If, after reviewing the three categories of evidence, it is still unclear whether a worker is an employee or an independent contractor, Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding (PDF) can be filed with the IRS. The form may be filed by either the business or the worker. The IRS will review the facts and circumstances and officially determine the worker’s status.

Be aware that it can take at least six months to get a determination, but a business that continually hires the same types of workers to perform particular services may want to consider filing the Form SS-8 (PDF).

Employment Tax Obligations

Once a determination is made (whether by the business or by the IRS), the next step is filing the appropriate forms and paying the associated taxes.

Forms and associated taxes for independent contractors

Forms and associated taxes for employees

Misclassification of Employees

Consequences of Treating an Employee as an Independent Contractor

If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker (the relief provisions, discussed below, will not apply). See Internal Revenue Code section 3509 for more information.

Relief Provisions

If you have a reasonable basis for not treating a worker as an employee, you may be relieved from having to pay employment taxes for that worker. To get this relief, you must file all required federal information returns on a basis consistent with your treatment of the worker. You (or your predecessor) must not have treated any worker holding a substantially similar position as an employee for any periods beginning after 1977. See Publication 1976, Section 530 Employment Tax Relief Requirements (PDF) for more information.

Misclassified Workers Can File Social Security Tax Form

Workers who believe they have been improperly classified as independent contractors by an employer can use Form 8919, Uncollected Social Security and Medicare Tax on Wages to figure and report the employee’s share of uncollected Social Security and Medicare taxes due on their compensation. See the full article Misclassified Workers to File New Social Security Tax Form for more information.

References/Related Topics

Proper Worker Classification (Audio)

Virtual Small Business Tax Workshop - Lesson 6

The Virtual Small Business Tax Workshop is composed of nine interactive lessons designed to help new small business owners learn their tax rights and responsibilities. See Lesson 6 for information on how to identify an employee versus an independent contractor.

IRS Internal Training: Employee/Independent Contractor (PDF)

This manual provides you with the tools to make correct determinations of worker classifications. It discusses facts that may indicate the existence of an independent contractor or an employer-employee relationship. This training manual is a guide and is not legally binding.

Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding (PDF)

Publication 15-A, The Employer's Supplemental Tax Guide (PDF) has detailed guidance including information for specific industries.

Publication 15-B, The Employer's Tax Guide to Fringe Benefits supplements Circular E (Pub. 15), Employer's Tax Guide, and Publication 15-A, Employer's Supplemental Tax Guide. It contains specialized and detailed information on the employment tax treatment of fringe benefits.

Businesses with Employees

Hiring Employees

Who Is Considered Self-Employed?

Know Who You're Hiring - Independent Contractor (Self-employed) vs. Employee

Note: This page contains one or more references to the Internal Revenue Code (IRC), Treasury Regulations, court cases, or other official tax guidance. References to these legal authorities are included for the convenience of those who would like to read the technical reference material. To access the applicable IRC sections, Treasury Regulations, or other official tax guidance, visit the Tax Code, Regulations, and Official Guidance page. To access any Tax Court case opinions issued after September 24, 1995, visit the Opinions Search page of the United States Tax Court.

[ann and aties 9]

Lady, you said:

"I guess the main question here is that could a head of a household who is self employed and didnt receive any W-2s not file taxes???"

Here is a link to an IRS website:

Note it says: To determine if you need to file a Federal Income Tax return for 2009 answer the following questions:

Do any of the following examples apply to you?

Were you self-employed with earnings of more than $400.00?

Here is the link for the whole thing: http://www.irs.gov/individuals/article/0,,id=96623,00.html

The possible good news is, Lady, it is possible since you are head of household that you will qualify for an Earned Income Credit that can be applied against any self-employment tax. That is as much advice I can give you without possibly venturing into leading you down the wrong advice path. Either talk to a friend who does their taxes properly who is self employed or see a tax professional, please. Good luck!

[theladynthetramp 0]

thank you so much ann!

i read what u posted carefully n went on IRS site, and I htink i should just file my taxes as Independent Contractor (Self-employed) that way i wouldnt need W-2s because I never had 'em from babysitting. I can get exepmtions though from bein the head of a household (i have a qualifyin dependent child).

so would anyone tell me would i get the returns before or after i pay'em? n how long would it take?

what is the fastest way to get my returns? by filling up the tax form and send it or by e-filing it?