newbie here, with huge debt :)

[sblatner]

I would search on "lowering credit card interest rates" or something like that and see if anyone has tips on dealing with the credit card companies. I wonder if there are key words to use to get them to want to help you. Maybe ask if they can lower the interest rate for a year. Or, tell them your situation and ask them to take a payment of half of the amount now instead of payments for a long time (that is, when you get the money saved up).

I think there are many creative ways to approach credit card companies.

[disneysteve]

I'm going to have horrible guilt working "under the table" and not paying income taxes on this money.

So report it and pay your taxes. No reason to feel guilty about it.

I report "unreported" income every year. It allows me to fund my SEP-IRA. I've had my daughter report hers too so that she could contribute to a Roth IRA. It meant paying taxes that could have been avoided but the benefit was funding the retirement accounts.

[dotty63]

I would search on "lowering credit card interest rates" or something like that and see if anyone has tips on dealing with the credit card companies. I wonder if there are key words to use to get them to want to help you. Maybe ask if they can lower the interest rate for a year. Or, tell them your situation and ask them to take a payment of half of the amount now instead of payments for a long time (that is, when you get the money saved up).

I think there are many creative ways to approach credit card companies.

Yes you are right....time to get creative!

[dotty63]

So report it and pay your taxes. No reason to feel guilty about it.

I report "unreported" income every year. It allows me to fund my SEP-IRA. I've had my daughter report hers too so that she could contribute to a Roth IRA. It meant paying taxes that could have been avoided but the benefit was funding the retirement accounts.

I have no idea where on a 1040 to put the unreported income, but I will do a search and figure it out.

[sblatner]

I think you report non W-2 income on a schedule C for a business expense. If you do this, you can deduct either all or a portion of your cell phone, internet, mileage, etc., to lower your income tax and self employment tax (social security).

[hamchan]

So report it and pay your taxes. No reason to feel guilty about it.

I report "unreported" income every year. It allows me to fund my SEP-IRA. I've had my daughter report hers too so that she could contribute to a Roth IRA. It meant paying taxes that could have been avoided but the benefit was funding the retirement accounts.

Yep. I do this with my cash tips and other cash income. I also adjust my withholding at my job so they take out a bit more and that way I don't get stuck with a big tax bill.

[hamchan]

Can you use a schedule C even if you don't own the business or have a business license?! That would be good news. I have always just reported it as miscellaneous income.

[snafu]

Dotty, I'm contrite, and so sorry for jumping to incorrect conclusions. The combination of my lack of diplomacy and tendency to be blunt adds to my regret. I'm so glad you have retained your retirement fund. Wonderful that you've found part time work nearby to supplement your income and good that your father will cover the cost of propane.

[dotty63]

I think you report non W-2 income on a schedule C for a business expense. If you do this, you can deduct either all or a portion of your cell phone, internet, mileage, etc., to lower your income tax and self employment tax (social security).

Thank You, I'll check that out.

[dotty63]

Dotty, I'm contrite, and so sorry for jumping to incorrect conclusions. The combination of my lack of diplomacy and tendency to be blunt adds to my regret. I'm so glad you have retained your retirement fund. Wonderful that you've found part time work nearby to supplement your income and good that your father will cover the cost of propane.

No worries.

[Petunia 100]

Can you use a schedule C even if you don't own the business or have a business license?! That would be good news. I have always just reported it as miscellaneous income.

Yes.

[Petunia 100]

Dotty,

Is your divorce recent? If so, I suggest you slow down. Take some time to think about what you really want.

Do you really want to be in consumer debt another 10 years while you work two jobs? You are setting yourself up for very lean retirement years.

I think finding a better paying job, relocating, selling your home with equity, and using the proceeds to pay towards debt makes a great deal of sense for you. Then, you can use your 50s to build up a big nest egg. Once you retire, if you want to move back to your rural area, use some of your nest egg to make a big downpayment on a modest home.

Are you an RN? An LVN? A CNA?

[hamchan]

Yes.

So I could deduct my professional license fees, liability insurance, required CE classes even if I work for someone else? Do you have to itemize?

[Petunia 100]

So I could deduct my professional license fees, liability insurance, required CE classes even if I work for someone else? Do you have to itemize?

Do you receive a W-2 or a 1099? Or nothing at all?

[disneysteve]

So I could deduct my professional license fees, liability insurance, required CE classes even if I work for someone else?

Absolutely. I've been an employee my entire career but I still deduct all work-related expenses that I pay for myself.