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Independent contractors

I gathered some musicians together to participate in a local parade. The check was mailed to me and I also received a W2 form. I distributed all of it to the (15) musicians who played the parade. It was a small check ($745). How can I show that the money I received was distributed so I don't have to pay taxes on it?  I

paid them with checks from my personal account.

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2 Replies

Independent contractors

Yikes, I think you are stuck.  You can't deduct expenses from W2 income anymore.  Why didn't they give you a 1099NEC?  Then you could file it as self employment on Schedule C and deduct all the expenses and people you paid.  I would ask them.  

AliciaP1
Expert Alumni

Independent contractors

As VolvoGirl said, you should not have received a W-2 from the parade organizers.  The income should have been reported on a 1099-NEC.  You need to contact the payer and request the W-2 be voided and a 1099-NEC be issued.  Once you have the 1099-NEC you should enter it in TurboTax as self-employment income and list the payments you distributed as expenses.

 

@Norsky 

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