Hello,
I have worked at a local family business for 4 years but I am paid under the table. I don’t think I am listed as an employee, taxes are not taken out of my pay, I make less than minimum wage, etc. Also, it is a farm so I think that slightly different laws apply to them as far as employment of minors (which I am).
The problem is that I am so very confused about this financial aid process as I have already filled out the FAFSA and CSS Profile but colleges are asking for other forms and I don’t know what to do. The IDOC is allowing me to submit a verification sheet and non-filer’s statement, but I am slightly uncomfortable with this because I will be lying and giving conflicting statements if I say that I earned no income from work (I listed my job as an activity on all of my applications). At the same time, I do not want to get my employer into legal trouble by listing my income. Also, I have no idea how much I earned in 2015 and I have virtually no savings so it’s not like there is loads of money that I am hiding from colleges and the IRS.
So what should I do? Just say that I earned nothing and submit the forms?
The first thing not to do is lie. You need to complete the financial aid forms truthfully. In my opinion, it’s not at all likely that an unemployer paying under-the-table wages will be exposed based on a financial aid form. This will be problematic, however, if you earned enough money such that you were required to file a tax return. You say that you listed your job as an activity on your applications. Admissions and financial aid is usually two separate offices, although depending on the school they may communicate with each other. Reporting a job while also reporting zero income will look strange, if that information is ever linked up.
If you have already submitted FAFSA and Profile reporting zero income, if in fact you did have income in 2015, then you have already been telling lies. But it’s not too late to fix it.
“Oh! What a tangled web we weave, when first we practice to deceive.”
For the future, maybe you should try and find a different job, one where you make at least minimum wage and would be covered in case you get injured on the job.
Then you could file a tax return and filling out your FA forms would be easier.
Alright, so If I edit my FAFSA to report my earnings, (I doubt that I earned enough that I would need to file a tax return) what should I do about the other forms? The IDOC wants my W-2. Of course, I do not have this form, or any of the others that I could submit instead i.e. Form 1099, year end pay stub.
You will probably need to explain why you don’t have tax or other paperwork that documents your earnings. The explanation is simple: you were being paid off the books.
My kids work as referees. They are paid by check, but no taxes taken out, no W2s, etc, and not enough income to have to file taxes. For their IDOC we sent copies of SOME checks (those we had copies of) and a spreadsheet that documented the entire income for the year. So not complicated if you have a reasonable estimate of what you earned. You can just say that you were paid cash, and you have no W2. The documentation you submit is used as an alternate to the W2.