You would also be now liable for back state and federal taxes and ss/medicare tax from Jan to Sept of this year - may cost you more than you'd make in unemployment benefits. |
| Most folks don't pay federal and state income taxes. Or they lay them but get 100%+ back when they file. Likely this nanny is in the same boat. |
Why no answer? |
Not sure how that is possible unless you earn less than the personal exemption in a year. Even if you are only making 15/hr (as all the nannies here insist you must) that's still over 30K per year and your tax bill would be almost 2800 assuming single and no dependents. That doesn't include state or the 7.5% in ssi/medicare tax. |
What? "All the nannies here insist you must" what? |
Uh, apologies, I've been busy and hadn't been back to the forum. Let me explain: OP wants to know if she should claim unemployment, thereby reporting her employers for failing to pay their share of her taxes. She doesn't indicate but we can assume she has not been paying her share of the taxes either, in which case she will certainly owe money to the govt before qualifying for unemployment, which is only a percentage of her current income anyway. If all of the above is true it is safe to assume OP will save more money by NOT claiming unemployment. However, if our assumption is wrong and she has been paying taxes on her income, PP has shared that when she reported her employers and the govt went after them for employer's tax that she received a refund of $1500. How much you earn determines how much you'd pay in taxes and therefore how much of a refund you're entitled to. If OP makes and pays taxes on an income of only $600/week while it was PP's $1500/wk paycheck that entitled her to such a large refund, OP would need to know that in order to estimate what her refund might be. |
Karma is a myth Stand up for your rights and stop being a doormat, unless you like footprints on your face |
She was talking about how most of us nannies tell others that they should be working above board and paying taxes, not under the table and not reporting your income. |
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No, 3:03, that's not at all what she said. You aren't reading clearly. Here it is:
"Even if you are only making 15/hr (as all the nannies here insist you must)...." The truth is that absolutely NO ONE here "insists that all nannies must be making 15/hr." It appears her writing is confused, or it's actually you trying to convince OP not to collect the money that is rightfully hers, although you're going about it in an odd way. OP should in fact collect the money that is rightfully hers, even if you don't approve. |
No, there are credits that make it possible to get a refund without having paid any through the year. I didn't have taxes withheld when I was within the limits for earned income credit and got a $1K+ refund. |
Did you pay Federal back taxes? |
no. I got a refund. Presumably because i was on unemployement during the year. |
Sorry, my mistake. I was really tired and read that wrong. |
Also, I am not trying to convince the OP to not collect. I think at some point I told her that if she hadn't been working above board in her previous positions that she might not want to, because she would have to prove her work income for the previous 18 months and might end up owing more for all of that than she could even get from unemployment (if she got it). But I think whatever she does is totally up to her, she should just think things through really good before (research what it could mean for her with pros and cons). I don't know who she is and have no opinion of what she should do, my "approval" would mean nothing to her anyway. |
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I don't know the PP's full story of how she got a refund when she claimed unemployment, however, I would not file for unemployment if you haven't been paying taxes. Yes, the family will likely have to pay back taxes, but so will you. Federal tax, state tax, possibly county tax, social security, medicare plus penalties for not paying when you were suppose to (and possibly legal fees), would probably cost a lot more than you'd get on unemployment.
I also think it's curious that OP says she was accused of stealing something, but they have no proof. She didn't state that she didn't steal anything- just that the employers had no evidence. |