Is money that is earned "under the table" and paid in cash taxable?

They're supposed to, but they don't. That's what "under the table" means.

Wait staff for example is paid in cash and reports their wages for tax purposes.

Legally, the answer is yes.

The employee files a tax return for any reason, they must report ALL income including cash under the table of any amount. Its reported as self employment income using schedule C and schedule SE (if applicable).

If the self employment income is less than $400 and they're below the gross income requirements to file, then the person is not legally required to file a tax return. But, if they file a return for any reason, they have to report ALL income.

The employer is required to issue a 1099-MISC for any independent contractor who earns more than $600. But, the person receiving the income is required to keep their own records and report it even if a 1099 is never issued.

The IRS often finds these cheaters because the employer tries to claim business expenses for the payroll, but the IRS will see that the total reported wages on W-2's and 1099's is less than the employer is trying to deduct. They'll investigate the employer, who will then issue 1099's and all the people that tried to scam the IRS will get an audit that ends with a big fat bill.

Legally yes it's taxable and needs to be reported, whether the employer provides a 1099 or not - if you don't, you're illegally evading taxes.

Legally they are required to if they pay you over $600 in a year, but if they're already paying you illegally, chances are they'll ignore the reporting also.

Technically yes it should be reported but I have TONS of friends who are personal assistants & get paid under the table, and never pay taxes. But then again they're only making $500 a week.. Try not to deposit the money in the bank, only deposit what you need. It looks less suspicious and you can fly "under the radar" if you don't put it all in the bank. I get paid under the table but make about $2,000 a week and pay for almost everything in cash, the less I deposit the better. Haven't done taxes in years and am still fine (knock on wood) lol

The employer may have a record of payment but you should ask if they do & if they pay taxes on your employment.

YOU may be taxed on the "gift", he will not. It's is NOT subcontracting. The problem is that it is NOT a gift. IF you give him more than $13,000, you are legally obligated to report that money to the IRS. You realize what you are doing is illegal on several levels: 1. It's fraud (if you think the company can't pretend they never knew you were doing this, you are nuts). 2. It's tax evasion for him 3. It's benefits fraud in terms of avoiding him reporting income in order to continue getting his father's benefits - when caught, he will be liable to pay back ALL the benefits received fraudulently, plus penalties, and risk jail time.

yes

if the person you perform services for pays you $600 or more, yes, he is supposed to issue you a 1099

but considering that he is probably not paying you properly in the first place he may not

you file any and all your cash and under the table income on Sch c which means you are independent contractor, you pay your own self employment tax(approx.15.3% of your Sch C 'net') on Sch SE, to include with your 1040

By law, yes, but the point of paying "under the table" is to avoid paying taxes. That's what "under the table" is, by definition. It's under the table, and therefore it passes from one person to another, outside of the watchful eyes of the IRS.

if the employer claims that money as monies to pay an employee then yes it is taxable and the employer would provide an ROE.

But if it'struly under the table the employee and employer will not claim it as income/expense respectively.

Yes, it's taxable. ALL income is taxable.

well yeah its taxable but its never reported thats why its called under the table