Working like an illegal before your EAD arrives

[kitkat1 5]

I would read through the IRS website - it actually provides a lot of clear information, surprisingly enough. You also have until April 15, 2007 to pay any income due on self employment in 2006 so you could make one large estimated payment on January 15, 2007 (that's the next due date for estimated filers) and end up ok.

Hate to sound preachy, but getting a large refund is equivalent to allowing the IRS to keep your money, without paying you interest, all year. Maybe while you are getting up to speed on your new tax situation, you can revisit your deductions since the best scenario of all is breaking even on April 15. Otherwise, you've lost out on an entire year's worth of interest by letting the IRS keep you money until they send you a refund. Just my opinion . . .

[payxibka 10,045]

I would read through the IRS website - it actually provides a lot of clear information, surprisingly enough. You also have until April 15, 2007 to pay any income due on self employment in 2006 so you could make one large estimated payment on January 15, 2007 (that's the next due date for estimated filers) and end up ok.

Making a big payment in Q4 only avoids the penalty for underpayment in Q4. You could still be in a penalty situation for Q1-Q3 even if you did that.

[lizroxy24 0]

I suppose theoretically if you can find such said employer who will look the other way....

I am a Spanish speaking social worker in the western part of the US and work with hundreds of families that are here illegally. What is one of the most interesting things to me is that when you ask for income verification the majority present actual paychecks with Taxes being withheld automatically. The points being made about immigration and IRS being completely different agencies is very obvious when you consider that the IRS will give just about anyone a taxpayer ID number and let them pay taxes regardless of their immigration status. A taxpayer ID number is completely different from a Social Security number and has nothing to do with work authorization either. I once had a accountant friend tell me that there are tax codes written to allow people to pay taxes on all sorts of illegal income if they want to, most crooks obviously don't take advantage of it because it would be self-incriminating. What generally ends up happening with individuals working here illegally is that these individuals end up having their taxes withheld but rarely file tax returns out of fear of involving themselves with any sort of government agency. In most cases I have seen, if they would file they would be eligible for a refund and are in fact paying more taxes than your average citizen.

As to the comment about "theoretically" finding an employer who is willing to look the other way, there are thousands of employers doing so currently. They are caught so infrequently that most simply accept the risk for the benefit of having workers to fill their positions. From an employers perspective, if you have a job that you need filled and you have an applicant who is qualified, (especially in the case of an applicant with a K-1 where there is a good chance they will have a green card within 6 months to a year) I can see there would be tons of employers willing to take that risk.

Legal vs. moral, right or wrong can be debated forever but the realities of our system can make it very difficult to play by all the rules and realistically survive.

[noviademexicano 0]

For years, I got paid cash and that was my primary source of income, I reported all that I made for the year minus all my expenses for business. I did claim everything on my income tax return and paid taxes. There is nothing wrong with getting paid cash, just keep a record of everything including reciepts, equipment and everything else you deduct. I'm glad I did that wouldn't have it any other way. My previous income tax returns have helped me with this immigration process so far and have allowed me to purchase homes and vehicles.

Nothing is wrong with getting paid cash, just report it to the IRS at the end of the year.

As a contractor, I never got asked for SS card, but I would get asked for taxid#.

[kitkat1 5]

As a contractor, I never got asked for SS card, but I would get asked for taxid#.

As a contractor a SSN is not required unless that's what is being used on the 1099. Otherwise an ITTN is acceptable.

[PachucoBro 3]

Let's say taxes were not taken out during the year of this independent contracting job, but the total amount altogether is less than $4,000. Any idea what the penalties would be in that case?

MHandMB,

To give you an idea. I goofed on 2005 and forgot to add in a 1099 I got from Google Inc. for the amount of $1200 or so.

I got a notice about 2 months ago with a total dues after fees and interest of about $400.

That was the tax I owed plus the fees and self employment yadda-yadda.

[motu 5]

MHandMB,

If you do not have much of a 'contractor' income - you will still be liable for the social security taxes (employer and employee portions both - I think its about 16 or 18%.) If not paid quarterly, you may owe interest and penalties - look at the IRS website and search for self-employed topics - I used to do it many years ago but have forgotten the form nummbers. Good Luck

[Texas Bound 0]

I just wanted to say to all of you!!! I loved reading your thought processes. Such Intelligence here & Sneakiness too. Love it.

[JElsafty 0]

I'm udderly, completely, and totally confused! So can my husband work without his EAD or not?

[Dr_LHA 3]

I'm udderly, completely, and totally confused! So can my husband work without his EAD or not?

Sure he can work without an EAD. Is it legal? No. Will he get punished for it? Most likely not. Will it affect his AOS? No. Can his employers be punished for it? Yes.

Edited December 22, 2006 by dr_lha

[JElsafty 0]

I'm udderly, completely, and totally confused! So can my husband work without his EAD or not?

Sure he can work without an EAD. Is it legal? No. Will he get punished for it? Most likely not. Will it affect his AOS? No. Can his employers be punished for it? Yes.

And I'm the one with the black cloud that follows me around that would get in trouble for it.

[Dr_LHA 3]

I'm udderly, completely, and totally confused! So can my husband work without his EAD or not?

Sure he can work without an EAD. Is it legal? No. Will he get punished for it? Most likely not. Will it affect his AOS? No. Can his employers be punished for it? Yes.

And I'm the one with the black cloud that follows me around that would get in trouble for it.

In what way?

[Killer_Clown_2009 0]

He can work. He is not suppossed to work though. He is supposed to apply for an EAD. Anyone can work if they can find an employer willing to overlook the illegalness of it all. Anyone can choose to break laws, it's probably quite tempting when a person knows that certain laws are not enforced, however it's still breaking a law.

On that pleasant note, I am off to start preparing for Christmas.

[Texas Bound 0]

He can work. He is not suppossed to work though. He is supposed to apply for an EAD. Anyone can work if they can find an employer willing to overlook the illegalness of it all. Anyone can choose to break laws, it's probably quite tempting when a person knows that certain laws are not enforced, however it's still breaking a law.

On that pleasant note, I am off to start preparing for Christmas.

MERRY CHRISTMAS TO ALL & TO ALL A GOOD NIGHT. MANY BLESSINGS.