What to Do with Form 1099-MISC?

My daughter is a college student and had a position as a research assistant during the summer at MCV in Richmond. She just got a 1099-MISC for that work as a non-employee. Her only money was a stipend for food amounting to $1100.00. She didn’t get this until after the 1/31 deadline and I had filed her taxes (dividends earned) on 2/10 so now need to amend the return. As I fill out the forms thru Turbo Tax it says she is considered as a self-employed person with her own business which is really not the case. I am having trouble filling out the schedule C since she doesn’t have a business – just a student that lands a research position and gets paid for food to live at the university for 8 weeks. When the form asks for her business name and address, I don’t know what to put in those spots. Is this on the 1099 form or do I put her dorm address, home address? Not sure what to do. Instructions for the form are not very helpful so far. Thanks for any help you can provide,
Grace

I’m a research assistant and I also received a 1099-misc for “rent” and “nonemployee compensation”. I just talked to the university and was told that personal money I used for equipment and then was reimbursed for was filed under miscellaneous. In my case, the 1099 is a mistake and I don’t have to worry about it. I would suggest that you call the university and ask why the per diem would be miscellaneous income and not part of her wages. Hope this helps.

I received a 1099-misc for 3885.71 as an Life/Health Insurance Agent, but I left the company because I was not making enough money to live, so the business was ‘a loss.’ The article stated that the amount needs to reported ‘ONLY IF YOU HAVE A NET PROFIT.’ Does this mean I do not have to report the 1099-MISC? How do I handle this form since the business was a loss. I never had a business ID or anything and was basically an independent contractor. Help Me, Please.

Robert: You do need to report the income that was reported on Form 1099-MISC. This goes on Schedule C and is attached to your Form 1040. The part about “only if you have a net profit,” refers to the self-employment tax. This tax is assess on the net profit of a self-employed person. Since you had a loss, you will not have to pay this separate tax.

I sold rights to use a photograph ($800) to a publishing company and got a 1099. I don’t have my own photo business, and I have a regular full time job and received my w-2s- how would this situation be handled for filing?

Amy: Sounds to me like these are royalties paid for the use of your photograph. This is reported on Schedule E page 1.

thank you!

That Schedule C comment is quite informative.
I was denied rehire from an income tax company because I put Schedule C income on line 21. The dopes running their training division never taught us how to do it.

Steven, if the work was performed was clearly not a business (i.e., was a hobby), then it might be properly reported on Line 21 instead of on Schedule C. Also, if the amount was $400 or less, it would not matter mathematically where the amount was reported, since there would be no self-employment tax due.

My husband helped a friend get a job with his earlier company and received a 1099-MISC for the referral fee he received. The amount is entered on Box 7 of the form. He does not have a business nor does he provide any sort of service. Where does this amount get entered while filing our 2008 taxes?

Raos, this income is reported on Schedule C or C-EZ. You’ll also need to add a Schedule SE if the dollar amount of the net income from the Schedule C (or C-EZ) is over $400.

my sister watches my other sisters kids, and gets paid for it. now the one wants to claim the child care credit but is not sure what form to give the other. this is the only income for the one so how does she file it on her taxes. what forms do they need

My son was on a court tv show and received $2,200. He received a form 1099-Misc. How is he supposed to account for this on his 2008 taxes?

My company issued me a 1099 Misc. for $30,000 for the housing and utilities they cover for us all year long. What are our options to help lessen the blow of paying the taxes on this money all at once in the future. Can my company set this up differently so we pay taxes a little throughout the year instead of all at once during tax time?

I should add to my question above that we do not own the home we live in, my company owns it and all of the utilities are in the company’s name.

Juli, this is rather complicated situation, and the other sister (who wants to take the child care credit) should consult with an experienced tax accountant. The issue here is that sister #2 (with the kids) may need to pay the nanny tax to cover sister #1’s Social Security and Medicare taxes. Sister #1 may or may not need to file a return, it will depend on her total income, and whether she is considered an employee or self-employed, which will intersect with the nanny tax issue I just mentioned. Also, sister #1 must be over 19 years old if sister #2 wants to claim the tax credit. Because of the multiplicity of issues here, they should seek professional input to make sure they cover all their bases.

Marjorie, your son will fill out Schedule C or C-EZ and attach it to the Form 1040 long form. He’ll also need to fill out Schedule SE to calculate his self employment tax, which pays into Social Security and Medicare.

Julie, first issue is whether you are employees or independent contractor with respect to the company you work for. If you’re employees, then you should not be receiving a 1099-MISC at all, and the employer will need to correct both your 1099 and your W-2.

Second issue. Housing provided by an company for its workers is considered taxable income unless three tests are met. If all three tests are met, then the value of the housing is excluded from your income. The three tests are:

(1) the housing is for the convenience of the employer,
(2) the housing on the business premises of the employer, and
(3) the housing is a condition of employment.

Note that this references employer and employment.

Third issue. If you are independent contractors, then this exclusion is not available to you. Independent contractors are considered self-employed.

After you work through the issues over whether this is taxable to you or not, then you’ll be in a position to plan ahead for next year. If it’s taxable, I would increase your withholding or pay in extra estimated taxes to cover the tax bite.

I received a 1099-misc for merchandise I received as a sales award. I am not an employee of the payer, not an independent contractor. Where do I report box 7? I am employed by a company other than the payer.

Ellie, if the dollar amount is listed in box 7 for nonemployee compensation, then this needs to go on a Schedule C or C-EZ. This income will also be subject to the self-employment tax (for Social Security and Medicare) so you will also need Schedule SE.

William – after more research, I believe the amount should go in Box 3, not Box 7! I have notified the company that issued it. We are not self employed individuals, and only received this FMV in awards for sales through my husband’s employer.

I am helping my daughter who is a teacher to file her income tax returns. She received her W-2s from the teaching job she does.The other job she where she works part time sent her a 1099b and when I fill out the form it asks me for the company name but she just tutors for this nonprofit organization and she is not one of the employees. How should I fill in this amount in her tax returns and what should I write for the company name.

William, I have the same question some people have asked here but your answer doesn’t cover the “full” question.

Here is the question:

I have a friend who has got a 1099-MISC form from her employer for tax year 2008. She didn’t get any W-2 form from them. And she doesn’t have any other jobs.

Your answer to similar questions has been:

This income is reported on Schedule C or C-EZ. You’ll also need to add a Schedule SE if the dollar amount of the net income from the Schedule C (or C-EZ) is over $400.

But Schedule C is for those who own their business and have Net Profit\loss from business. Schedule SE is also for Self Employed people who own a company.

When you use TurboTax it says you are either an Independent Contractor or a Self Employed/Business Owner if you received a 1099-MISC. Then it asks you to provide the following:

1) Your “business” name
2) Your business ID (federal ID) number
3) Accounting method used in the business (i.e., Cash, etc.)

Well, she doesn’t have her own “business” and she is not Self Employed. She just works for this company who gave her a 1099-MISC for her wages.

So:

1) Did her company make a mistake giving her 1099-MISC? And should they have had issued her a W-2 instead?

2) If this is not a mistake, then how can she report this income when TurboTax considers her an Independent Contractor/Self Employed when she dosn’t own a business of her own?

Thanks in advance,
Sam

If I am already working a full time job and receive a W-2. and I make additional money and am given a 1099. What do I need to do before tax time next year -taxes for (2009) in order to offset the 1099 taxes? What deductions, etc? Thanks.

I am a self employed owning a business oversseas. I am not a USresident and last year all work perofrmed was on a project in England. However I was contracted via a US company and had payments be deposited in US bank acocunt since my wife is on an F-1 visa studying a MAsters degree in US and I sent payments to maintain her. I did receive a 1099 MISC form for income I made last year for this contract work. However I worked under an English work permit and work visa and have work permit in england stating my salary in GBP. What should I do in this case?

I, too, am puzzled about how to file a 1099-MISC form I received from my daughter’s school. I worked at the school in exchange for the balance on her tuition. I never received any money; they just applied the hours I worked toward her tuition balance. I was surprised when I received a 1099-MISC form with the tuition amount listed in box 7 as Nonemployee compensation. I don’t have a business, so I’m not sure how to file. I can’t list it as Other Income on the 1040 form because it was a box 7 amount. Do I have to pay taxes on money I never received? Any help would be appreciated!

My husband worked as a temporary contractor out of state. He filed a W9 but the company refused to send him a 1099 saying that since he made less than 10k he does not need to report the income. I understand that you must report any income over 600 so, can I file our taxes & report the income without the form?. These people is not returning our phone calls and no form ever came in the mail. I don’t want to delay our taxes any longer. My husband had a lot of expenses while working for them (gas, supplies, lodging, etc) the company initially told him the expenses were going to be reimbursed but he was never paid for them either. We have receipts and we will be claiming them as business expenses.
Thank you for your information

I received a 1099-MISC from the county of Oneida in NYS. I received these funds for watching my niece who’s mother qualifies for day care assitance. According to the instructions this is said to be self employment income. I don’t really understand that since i am not self employed. I have a full time job which i receive a W2 for. I believe this should be in box 3 -is that correct?

My daughter is a student at Northeastern University in Massachusetts. Her father and I are divorced and his insurance would no longer cover her because of the 5th school year at Northeastern. She had to take out a loan to pay for a year of insurance which amounted to $3,950, because of the Massachusetts law which states that everyone must have health insurance.Can she amend her 2008 taxes and claim this expense? What forms are needed to do this? She filed a 1040EZ form and has already received her return. Any help would be greatly appreciated!!

Diane, your daughter does not need to amend her tax return. That’s because her deduction for health insurance would not exceed her standard deduction for the year, which is 5,450 for a single person in 2008. Thus it sounds like she file her return correctly.

I received a 1099-misc for egg donation to a fertility clinic. I do not own a business and do not understand how to correctly file for this. Any suggestions?