How is tax paid in the US fora service agreed aand paid between two independent persons?
I know that the US has a free economy, which means no closed professions etc. If yopu don't hire someone as an employee and you don't have a business, but you want to make a private deal between two individuals. For example you find someone who will walk your dog or someone who will babysit or someone who will teach your kids a foreign language, but is not a professional. It may be the neighbour's daughter or a foreign person whom you want your kids to learn her native language from. Is it legal? And if so, is tax due? And how is it paid?
Thanks all, I just wanted to know, can you declare this money simply on your tax form? Because for example in my country, you declare salaries, income from freelance profession that must be a standard profession with income-expenses books and invoices taken to the tax office, income from other specific declared activities. But if I decide that I want to walk people's dogs, this is not my normal profession, so there is no code on the tax declaration to put it even if I wanted to.