Get your taxes done using TurboTax

It depends.  If you were paid more than $2,800 then you should not have been given a 1099-NEC instead, you should have been given a W-2.  In this case, the employer would have been responsible for paying half of the social security and medicare taxes. 

Yes and no, if you report the income on the 1099-NEC as self-employment income and you will be responsible for the SE taxes which are 15.3%.  Because you did not pay them, you would have an underpayment penalty. 

First, you should contact your employer to explain that they should have given you a W-2 and that you would have been considered a household employee. If they do not agree you can include form 8919 with your return.  You can do this by following the steps below.  This will tell the IRS that you should have been paid as an employee, not an independent contractor. 

You can also file form SS-8 to get a definite answer from the IRS. 

 

1. Income
2. Miscellaneous Income
3. Other Income not already reported on a Form W-2 or 1099
4. Yes, to did you receive any other wages
5. Continue through until you get to Any Other Earned Income and select Yes
6. Select Employee compensation that was not reported on a W-2
7. Continue through answering the questions.  Put a checkmark in the box that says you received a 1099-NEC
8. Select letter H- I received a form 1099-NEC that should have been submitted on a W-2

TurboTax will then include form 8919 with your return for uncollected Social Security and Medicare wages.  This will have you pay 7.65% instead of 15.3%.