digital foot print and the tax man

[BossyWillson]

For all the ones that took payments with a digital cash app, good luck trying to dodge the tax man.


This will be the year the IRS will flag your file if your income had a lot of cash app income.



i only have one and the money flows out only due to the Tax Man.


What do you think?

[Bald Bryan]

I think being taxed on income is nothing new, so why people are surprised/freaking out about this is just silly imo.

[TexTushHog]

Originally Posted by Bald Bryan

I think being taxed on income is nothing new, so why people are surprised/freaking out about this is just silly imo.

Amen! And improving the financial system to foil tax cheats is likewise not new. Taxation compliance enforcement was around long before I was born abd changes constantly. The best way to defend against unpleasant surprises it’s to pay what you owe.

I’ve never had any sympathy for tax cheats. I pay all my taxes because 1) it’s the right thing to do; and 2) it’s the law. All of my income is reported and it doesn’t bother me at all that everyone else’s is, too.

[ahab11]

Those who have an LLC can legally claim a host of expenses against income.

The person who really gets screwed in this is someone like a High School kid who moved lawns or watched/walked pets and took in digital payments he/she will get a W2 if over 5K. Previous limits were 20K and over 200 transactions.

That kid can file a Schedule C and claim a host of deductions or register as an LLC. What sucks is the parents will probably find out if the kid filed a return or got a W2 for over 5K they lost that kid as a deduction on their return.

Over the past several years i've been at Poker Tables in Vegas and if in a tournament, and i'm among the final 4 or fewer at a table, I offer to take the W2 hit. Chop the pot in my favor of course. Never had anyone turn me down as Vegas Gamblers want nothing to do with giving out their SSN and getting a W2.

Once you get on the IRS Radar you better have you shit together, unless your a very good book keeper.

[BossyWillson]

Originally Posted by TexTushHog

Amen! And improving the financial system to foil tax cheats is likewise not new. Taxation compliance enforcement was around long before I was born abd changes constantly. The best way to defend against unpleasant surprises it’s to pay what you owe.

I’ve never had any sympathy for tax cheats. I pay all my taxes because 1) it’s the right thing to do; and 2) it’s the law. All of my income is reported and it doesn’t bother me at all that everyone else’s is, too.

Seems like they all ways go after the little guy.
When you here of Companys paying $0 tax and having accounts in other countrys to dodge the tax man.


i would like to see a flat federal tax and Texas doing a 3.5% State income tax would be nice with only a 1% property tax.

[AP51]

Originally Posted by BossyWillson

Seems like they all ways go after the little guy.
When you here of Companys paying $0 tax and having accounts in other countrys to dodge the tax man.


i would like to see a flat federal tax and Texas doing a 3.5% State income tax would be nice with only a 1% property tax.

Sounds like you are a transplanted Californian or New Yorker. Texas doesn't need a state income tax. Once it starts it never ends. Sounds like you're trying to cheat the tax man.

[TexTushHog]

Why would a person getting substantial electronic payments get W-2? Seems like a 1099 would be more appropriate. No employment taxes have been paid by an employer, correct?

And what expenses can be deducted by an LLC that can’t be deducted by a sole proprietorship or partnership? I’ve seen all kinds of deductions on Schedule C’s, F’s and 1065’s.

[Bald Bryan]

Originally Posted by AP51

Sounds like you are a transplanted Californian or New Yorker. Texas doesn't need a state income tax. Once it starts it never ends. Sounds like you're trying to cheat the tax man.

In fairness, I think lowering the property tax rate drastically to 1% would be welcome by most residents regardless of their origin. After all, Texas is among the highest taxed states.

[cochi13]

Wish I was smarter on the whole tax debate and deductions but
....didn't our forefathers say taxation is theft? Like local aka city property and sales taxes should be covering public things but I do like a flat federal tax but let each state continue status quo, there is a reason Texas economy has been good where California has been questionable considering the resources and access they have. Just my opinion