cash income

[spooki]

my wife and I are meeting with an attorney next week regarding filing Ch13.
My wife babysits and is paid in cash or personal checks. If/when we file- can she ask the parents to pay her in just cash?
I know this may not be the right thing to do- but if she gets paid in cash is there a way for us to get caught?

[Flamingo]

my wife and I are meeting with an attorney next week regarding filing Ch13.
My wife babysits and is paid in cash or personal checks. If/when we file- can she ask the parents to pay her in just cash?
I know this may not be the right thing to do- but if she gets paid in cash is there a way for us to get caught?

When one is paid "under the board", there is always risk involved for either party. I don't mean the teenager babysitting for CD money on an occasional basis; something long-term as continual babysitting over a period of time. One of the risks is someone who knows about it telling someone or reporting you or them to the IRS or even to your Trustee after you file. Not only are you keeping income information from your attorney and trustee (fraud) but evading taxes. Only you can make the decision after you weigh out the good and the bad. Best of luck as to your filing.

[magyar123]

If the child's/childrens' parents list the childcare expenses on their tax returns they would have to list you as the childcare provider.

[SANRA308]

When We Filed We Had To Justify Every Deposit That Was Made Into Our Checking Account, If We Could'nt Explain Where The Money Came From It Was Added As Income. So If You Have Deposited Checks From The Parents Into That Account 6 Months Up To Filling They Will Probably Notice That

[woeisme]

As long as you cash the checks instead of depositing them, you'd probably go under the radar, but as others have pointed out, you are committing tax fraud as well as bk fraud. My Brother-in-law and his wife are considering BK right now, and he does lots of odd jobs for cash which he won't report, I'm sure. He probably earns anywhere from $0 to $500 a month this way, depending on the month, and he's never been concerned about the tax issue, so I doubt he'll be concerned with the BK issue. The people paying you don't want to pay social security taxes on their babysitter either, so they are also committing fraud right along side you, so I really doubt any of them will turn you in, you just want to keep your mouth shut about the situation in general, probably keep your BK status quiet too, to avoid the possibility anyone will blow the whistle on you. But you better be sure that no one you babysit for declares that child care expense on their taxes. (They would have asked you for your SS # because they need to report that on the forms.)

[MajorMike]

When We Filed We Had To Justify Every Deposit That Was Made Into Our Checking Account, If We Could'nt Explain Where The Money Came From It Was Added As Income. So If You Have Deposited Checks From The Parents Into That Account 6 Months Up To Filling They Will Probably Notice That

wow, we must be lucky to have the trustee we have. He didn't even want to SEE our bank accounts and again could care less.