As to what I meant by “getting around,” there are several ways. I do not report my tutoring services to the IRS. They’re aware that people are paid in cash for such services, and they don’t realistically expect people to report it. But on a larger scope, rebbeim often work as 1099 employees and file for parsonage exemptions. While it’s a bit of a stretch sometimes, no one seems to care; I did it for years. There are also business expenses that you can claim which are a stretch, but not outright lying.
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