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A filled a asylum application and it is pending on decisions. I worked by cashas a construction helper. How to tax filling for me?
AI accountant’s answer:
Since you worked and earned income, you may need to file a tax return, even if your asylum application is still pending.
Since you were paid in cash, you'll likely be considered self-employed for tax purposes. As a self-employed worker, you're required to report your income and expenses on Schedule C (or Schedule C-EZ) and attach it to your Form 1040. Your total net profit from the Schedule C will then be transferred to your Form 1040.
Additionally, as a self-employed individual, you're subject to Self-Employment Tax if your net earnings from self-employment are $400 or more. To compute the Self-Employment Tax, you'll need to complete Schedule SE and also attach this to your Form 1040. This tax covers your contributions to Social Security and Medicare.
Don't forget to keep records of your income and any business-related expenses, as you may be able to deduct them on Schedule C. For example, expenses such as tools, safety gear, and work-related transportation costs could be eligible deductions.
It's important to remember that I'm not a tax professional, and this is general guidance. If you need further assistance or have specific questions about your tax situation, it is recommended to seek advice from a tax professional.
Comment from reviewer
It depends on how long the client has been in the USA. He might need to file a 1040NR instead of 1040. Also, Schedule C-EZ is no longer in use.
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