I now have no more W2/1099, what should I do?

Hi there,

I left a job at the end of 2004 that I was receiving a W2 from. When I filed my taxes in 2005, I based every thing from that W2.

Now I am self employed. No boss, no filed business id's or permits, no w2/1099's....nothing!

I just receive personal checks/money orders from my clients made to my name and I also receive paypal payments that I transfer to my bank account.

I do own a home and pay mortgage payments. I just refinanced recently under "stated income" since I had no proof of income.

I have earned bank account interest income and I got the 1099-int in the mail. I also found that I participated in a money market through paypal and earned more than $10 so they are sending me a 1099-DIV.

What should I do for this year? I need help. I have read not to file Zero for income, or is there another form?

I am confused, I however make a living getting paid by cashing money orders, personal checks and accepting paypal into my bank account and there is no 1099 or W2 for the main money I make.

Thanks in advance and if anyone needs more info or any clarification please let me know!

I am so glad that I am W2/1099 free for my income!

[idknow]

Originally Posted by crazy_d

Hi there,

I left a job at the end of 2004 that I was receiving a W2 from. When I filed my taxes in 2005, I based every thing from that W2.

Now I am self employed. No boss, no filed business id's or permits, no w2/1099's....nothing!

I just receive personal checks/money orders from my clients made to my name and I also receive paypal payments that I transfer to my bank account.

I do own a home and pay mortgage payments. I just refinanced recently under "stated income" since I had no proof of income.

I have earned bank account interest income and I got the 1099-int in the mail. I also found that I participated in a money market through paypal and earned more than $10 so they are sending me a 1099-DIV.

What should I do for this year? I need help. I have read not to file Zero for income, or is there another form?

I am confused, I however make a living getting paid by cashing money orders, personal checks and accepting paypal into my bank account and there is no 1099 or W2 for the main money I make.

Thanks in advance and if anyone needs more info or any clarification please let me know!

I am so glad that I am W2/1099 free for my income!

you have plenty of time to use the search field at the top of every page here at the forum to learn about taxes, state and federal, and who you are, and who they are (the relationship tween you and them) and what to do next.

please study, it's gonna take some time, there is no magic bullet; edjucat yourself.

and we're here for questions.

[charlesa6]

Always study, and do some reseach.

[macerico]

A bit of advice....dump all bank accounts and investments. The way things are going, you could lose whatever you have in them, and it just makes your assets traceable. If you keep an account, use it for only the most needful of things...not for storing your wealth.

Possession is 9/10th of the law. If you don't hold it, you don't own it.

[weishaupt1776]

I really wouldn't "file" at all. Don't ever give out an SS# to anyone for any reason. Find a Bookeeping agency to cash your checks. See the SSA assigned the SS# to you, so the SS# is theirs not yours, so if the bookeeping agency asks for YOUR SS#, you can honestly say you don't have one. They have a bank acct, so just re-assign your checks to them to cash and withdraw

[rentiap]

crazy_d;
Welcome to the forum and to your continued education.

[SlaveNoMore]

Originally Posted by weishaupt1776

I really wouldn't "file" at all. Don't ever give out an SS# to anyone for any reason. Find a Bookeeping agency to cash your checks. See the SSA assigned the SS# to you, so the SS# is theirs not yours, so if the bookeeping agency asks for YOUR SS#, you can honestly say you don't have one. They have a bank acct, so just re-assign your checks to them to cash and withdraw

Weishaupt1776,

I've been thinking about using a private bookeeping agency for a while. Do you have any more information on this type of system? For instance, how much does it typically cost for this type of service, what happens if the agency goes out of business (i.e., what happens to your money, is it insured), can you typically work with them without an SSN, etc.?

Thanks,

SNM

[SlaveNoMore]

Originally Posted by crazy_d

Hi there,

I left a job at the end of 2004 that I was receiving a W2 from. When I filed my taxes in 2005, I based every thing from that W2.

Now I am self employed. No boss, no filed business id's or permits, no w2/1099's....nothing!

I just receive personal checks/money orders from my clients made to my name and I also receive paypal payments that I transfer to my bank account.

I do own a home and pay mortgage payments. I just refinanced recently under "stated income" since I had no proof of income.

I have earned bank account interest income and I got the 1099-int in the mail. I also found that I participated in a money market through paypal and earned more than $10 so they are sending me a 1099-DIV.

What should I do for this year? I need help. I have read not to file Zero for income, or is there another form?

I am confused, I however make a living getting paid by cashing money orders, personal checks and accepting paypal into my bank account and there is no 1099 or W2 for the main money I make.

Thanks in advance and if anyone needs more info or any clarification please let me know!

I am so glad that I am W2/1099 free for my income!

crazy_d,

Remember, you have to make a certain minimum amount of money each year before you are allegedly required to file an income tax return, so you may not have to file depending on what is your annual return on interest (which seems to be the only income being reported on you if I understand your post correctly). If, in your case it is only around $10, it is nowhere near enough. I think you have to make around $7k (have $7k of income reported on you) before you have to file a return. You can check the IRS website and see for yourself.

First thing I would do is get rid of the money market interest-paying aspect of PayPal because the measily amount you earn in interest isn't worth the reporting of it, and if your checking account isn't already a non-interest bearing account, i would get one that is. No need to generate any income reporting whatsoever, no matter how much or petty was your amount earned in interest. The current interest rates just aren't worth it anyway.

SNM

[Scott6454]

I am somewhat in the same situation as Crazy_D here. Good questions indeed.

Weis told me about putting your expensive assets in a Pure Trust, two of them - one for your house and a second for your car, and maybe even a third for your business if you have assets in there you would like to protect as well. That might help you out here too Crazy.

Unlike you I went and did all the things one would think one has to do when starting up a storefront business like I have. I got an EIN, which I know now I don't need as I will never have any employees, only people on 1099 subcontractor basis and even now I wondering about the paper trail with that. More research. A vendor's number which I do believe I legally need to operate from my town's store front location. I went from a personal business to a LLC to protect what assets I do have and now am also having second thoughts about that decision. I also have been thinking is there any way I can get paid cash rather than check or credit card and to stop using bank accounts as most people today like paying by check or cc when it comes to sizeable sums. Hmm I wonder if I can have the cc company pay directly into the Pure Trust?

So much reading and people saying A and others saying no go with B. Like you Crazy D we are just a small mom and pop business and like you I don't want to lose our home, vehicles, etc. especially to this corruption we have today.

On this website I have read on the book "AreYouLostAtC.pdf". I'm sure I have seen other moderators tell people to get this and if you ever have to go to court you need to make sure you are in Admiralty court and not civil and criminal. Any comment anyone?

Has anyone been successful in not getting audited, summoned and after the IRS starts investigating you they eventually leave you alone? I'm sure there are thousands of people using Irwin Schiff's file zero income with attached correspondence and not getting hassled at all? Weis was cool in telling me not to get any of those Anti-tax books.

Scott6454

[weishaupt1776]

The admiralty aspect in the Lost at Sea seems to be about the best way to go if one has not corrected their nationality

Zero Returns, 861, etc . . . very bad

I wouldn't ount on "the eventually they leave you alone" strategy.

that's just way too open ended