Q: I'm paid under the table as a dogsitter. How does that affect my income taxes?
A: Whenever you have an accession to wealth for services that were provided to another individual, you should report that income on your tax return. Because this job would be considered self-employment, you will be responsible for the income taxes associated with the net proceeds of the job as well as the 15.3% self-employment taxes. You will however get a deduction for half of the self-employment taxes that you incur related to that income.
Gregory Herman-Giddens agrees with this answer
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