Financial Information
If I had contractors libility insurance would i have to pay taxes on my jobs.?
Question : If I had contractors libility insurance would i have to pay taxes on my jobs.?
I do small paint jobs on the side of my regular enployment. On some jobs that I do they ask for proof of insurance. If I would get a contractors package of libility insurance, would the goverment expect me to claim those small paint jobs paid by check?
contractors insurance
Best answer:
Answer by Leo F
You have a coupe of problems, if you are working as a contractor and you do no have a contractors license you can be fined $ 5,000 by the state you are working in. To get a sub contractors license it takes a surety bond and liability insurance, to get the bond, it takes good credit. Your looking around $ 4,000 for the package. All it will take is one customer to turn you into the state and your done. And of course you will have to pay federal income tax on income and state BO tax.
-
-
#2 written by debijs 1 year ago
~~Any and all income must be reported on your taxes, no matter how small the job or whether you only do it on the side. Income from anything earned, must be reported.
When you take out liability insurance, then you can claim this as an expense on your taxes for doing the job. Also you write off any other costs you have to pay out for this income. This allows you to only pay taxes on what you net out of the work.~
- Comment Feed for this Post
The insurance company isn’t going to notify the government about your “under the table” work. But they ARE going to audit you – by asking for your tax returns.
If you don’t report income for a job, then that job isn’t going to be covered. That proof of insurance, is going to be issued by the insurance company, so they’ll know how many jobs you are doing.
If the insurance company things you’re doing illegal work – under the table work – they will cancel you. But they won’t report you to the IRS.