Must I Include Untaxed Supplemental Income in my Bankruptcy Petition?

Many individuals earn additional income by moonlighting at other employers. Oftentimes these positions are distinguished from traditional employment by the title independent contractor. Most of the time, income paid to independent contractors is not taxed at the time of payment. It is up to the contractor report and pay taxes on these wages during income tax season.

All income, even work done as an independent contractor, MUST be included in the bankruptcy petition. If you are an independent contractor considering filing bankruptcy, the Fears Nawatachi law firm has the answers to your bankruptcy questions.