I received a 1099 from my employer when it should have been a W2 instead. (Went through the determination list and will be filing form SS-8 before filing my return this year.) I read that if I truly believe the determination will be in my favor, I can file that income as a W2 (instead of waiting for the determination and amending my return next year) and fill out Form 8919.
My question is: Do I enter the income from the 1099 as a W2 OR do I enter it as "Misc Income/Other Income Not Already Reported on A Form W2 or Form 1099"?
When I enter the income as a W2 (and obviously have "$0" under any FICA) the total tax that I owe is substantially less than if I were to enter it as "Misc Income/Other Income Not Already Reported on a Form W2". Does anyone know why the tax owed would be different depending on how I enter this income?
Thanks in advance for any help.