- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
1099-NEC
Posted on 4/1/24 at 11:34 am
Posted on 4/1/24 at 11:34 am
I’m not exactly sure how this is suppose to be filed. She works a few days a week getting paid monthly. It’s for a lady’s new start up. The options I see are:
Business Income (Schedule C)
Farm Income (Schedule F)
Farm Rental Income (Form 4835)
Income employer should have reported as wages (not common)
She’s doesn’t work for her self and none of the other options seem right either.
Help
Business Income (Schedule C)
Farm Income (Schedule F)
Farm Rental Income (Form 4835)
Income employer should have reported as wages (not common)
She’s doesn’t work for her self and none of the other options seem right either.
Help
6
Posted on 4/1/24 at 11:51 am to yellowex
quote:
She’s doesn’t work for her self and none of the other options seem right either.
If she gets a 1099-NEC, she works for herself.
Now that may not be her intention, this could be a misclassified employee situation.
Has she been getting paid a salary or some set amount on a regular basis?
Has she heen having payroll and income taxes withheld from those checks?
But she's a Schedule C. And if that was not the intention, your wife has a problem.
Posted on 4/1/24 at 11:58 am to yellowex
quote:
She works a few days a week getting paid monthly. It’s for a lady’s new start up.
Need more info on the arrangement, but based on this alone, my guess is that it's:
quote:
Income employer should have reported as wages
Posted on 4/1/24 at 12:11 pm to LSUFanHouston
She has been getting paid a set amount.
No taxes have been taking out. I know I need to pay those just not sure how to file this.
The lady just writes her a check every month for agreed amount of payment
No taxes have been taking out. I know I need to pay those just not sure how to file this.
The lady just writes her a check every month for agreed amount of payment
Posted on 4/1/24 at 12:44 pm to yellowex
Her employer should have filed a 1099 for her. If not, you are being taxed and the employer are being taxed on the same money…unless the employer isn’t reporting anything.
Posted on 4/1/24 at 1:26 pm to Drizzt
The title of the thread is 1099-NEC.
Posted on 4/1/24 at 3:00 pm to yellowex
Whether you want to or not, you need to complete a schedule C and pay self employment tax on any profit.
Posted on 4/1/24 at 4:01 pm to yellowex
quote:
No taxes have been taking out. I know I need to pay those just not sure how to file this.
Use Schedule C to report the income (the amount from the 1099-NEC) and any expenses she can claim against that income.
That net income will flow in your tax return and you will owe tax on that, there will also be self-employment tax that your tax software should compute.
You could also look at setting up a SEP for her, she can contribute 20% of her net self-employment income to a SEP retirement plan. This has to be funded by the time you file your tax return, but you can file an extension if you need additional time to fund it. The amount she contributes is a deduction for income tax, but not for self-employment tax.
Posted on 4/1/24 at 4:31 pm to yellowex
quote:
She has been getting paid a set amount. No taxes have been taking out. I know I need to pay those just not sure how to file this. The lady just writes her a check every month for agreed amount of payment
Then she works for herself and needs to pick it up on a schedule C.
She’s a contractor with one client. (According to her client at least.)
This post was edited on 4/1/24 at 4:32 pm
Posted on 4/1/24 at 4:44 pm to Dead Mike
If she got the 1099 then this is a dumb question. She isn’t a farmer so it’s obviously Schedule C. It seemed like the OP didn’t have any paperwork from the employer which is why I said the employer should have filed a 1099.
Posted on 4/1/24 at 10:50 pm to yellowex
FreeTaxUSA.com
Posted on 4/2/24 at 6:45 am to yellowex
How do you file your taxes? Do you not use something like TurboTax? That’s all VERY cut and dry on turbo tax.
She should likely be paying quarterly estimated taxes additionally.
If she has scheduled hours on site somewhere then she should be an employee. I don’t care, but her employer can get into trouble for this and her employer should be paying more taxes.
Also OP, as a contractor she is going to have to pay considerably more self employment taxes. If she is paid say $15/ hour to work about 40 hours a month so $600/ month her real pay after self employment taxes is going to be 12-16% less so almost 20% less. That $15/ hour is really $12
She should likely be paying quarterly estimated taxes additionally.
If she has scheduled hours on site somewhere then she should be an employee. I don’t care, but her employer can get into trouble for this and her employer should be paying more taxes.
Also OP, as a contractor she is going to have to pay considerably more self employment taxes. If she is paid say $15/ hour to work about 40 hours a month so $600/ month her real pay after self employment taxes is going to be 12-16% less so almost 20% less. That $15/ hour is really $12
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News