<prompt> Human: Hi.I was living off of a friends generosity after an abusive situation - and thus having, and declaring, no income to the government - when about four months ago I started working remotely for a jazz musician in the area. For him, I call restaurants and local places to try and get him more gigs. Hes very kind to me and pays me OK, its 13hr for as many hours as I can do per week, up to 15 hours. I like the work. I like having work. Im on Medicaid - because, no income - I called the Medicaid office last week to re-apply, because you have to re-apply every year. Being the rather dutiful and overly honest citizen that I am, I told them proudly about my new work. I averaged out the math and its about 100wk, or 5200yr, more or less. Obviously the specific hours vary week to week but thats about the average.They then told me I needed to fill out about a billion more forms, that Id now owe taxes on my income. I suffer from severe anxiety and had a panic attack while on the phone with them and started crying, which didnt end well. I spoke to a supervisor who was also very overwhelming. I dont really understand whats going on and every time I try and understand I panic. I spoke to the jazz musician who said that he wasnt planning on declaring the income anyway, wasnt planning on declaring it as income. I was worried because he pays me through PayPal and I make him invoices, so theres a paper trail, I guess? But he hasnt been declaring it as income and on PayPal just pays me for friends or family to avoid the fee. I want, now, to call the benefit office again and un-declare my income. I want to now tell them, since my boss and I discussed it as such, that I earn no income. But - will they believe me? What will happen if I do that? Is that even possible? If I do that, will they look into it? Would I be committing a crime? I get paid in cash for some babysitting work too and I dont declare that income either. Is it the same thing or is it different? Please be gentle with me, the anxiety about this is very extremely bad and its hard for me to even type this. I am trying to deal with this as best I can. Other details - Im a girl, Im 28, I live in New York, in a suburb of NYC. Not in the city proper.  <response>: You do earn income. You still have to file taxes even if your boss wants to evade them. You and your boss cant just decide you dont earn income. Yes, it is a crime to commit tax fraud and welfare fraud is also likely a crime. 