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MentallyMusing t1_iye03g5 wrote

It's been awhile since I applied for a mortgage but typically they want 6 months proof of income. Your best bet to find a structure for taxes is to look at what hairdressers who rent a chair from the salon have to do (since they also get tips) the owner of the salon applies differently for taxes and is legally required to keep track of contractors working out of their shop

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ofmiceandmermaids OP t1_iye0xo5 wrote

I actually use to be a hairdresser so I'm familiar with that. That's very helpful thank you.

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MentallyMusing t1_iyelf4i wrote

No problem! Not all business owners are good about keeping their records but if they get audited the shit usually rolls downhill and everyone is on their own against the IRS. The IRS doesn't care what you were told or didn't know they'll take everything leaving you with $50 out of your paycheck if they attached you for future earnings (from your next employment checks) until you're paid up in full. In Massachusetts anyway for Federal and State taxes which of course are separate

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ofmiceandmermaids OP t1_iyelobv wrote

Yeah from what he's said the shop he works for under reports so it's a mess from the top down. But everyone here has been super helpful. It's going to take some work but I think I have a good plan forming.

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