Yes, we can file the Form 1099-MISC as though it was paid as an employee. This is completed using Form 8919 and TurboTax will walk you through the process. Please use the steps below to complete your entry.
As an employee, you are following the direction of the employer about when, how, where and with what tools you will use to do your job. As an independent contractor you say when, where and how you will do the job they contract you for.
That being said, as an employee, your employer must withhold and then match your social security and medicare taxes. You can enter your Form 1099-MISC amount as though it was paid as an employee and then you will pay only your share of the taxes. The IRS will go after the employer for their share of the employer taxes.
Wages from Form 8919 line 6 will go directly to line 7 on Form 1040. See IRS Form 8919 instructions for more information. If your wages were reported by your employer on a 1099-MISC with Uncollected Social Security and Medicare tax instead of on a W-2, TurboTax will guide you through entering the untaxed wages.
If you've already gone through the TurboTax step-by-step interview, jump directly to the entry screen for employee related income on a Form 1099-Misc, follow these directions.
- Select Federal Taxes (Personal in the Home & Business edition).
In Online TurboTax, click Federal Taxes on the selection list
- Select Wages and Income, and in the next screen, click I'll choose what I work on.
- Scroll down the Your Income Summary screen until you see the Other Common Income group.
- Click on the Start/Update button next to the Income from 1099-MISC topic.
- Enter the information from your 1099-MISC, then click Continue.
- On the Tell us why you received this 1099-MISC screen, click the box next to I got this 1099-MISC for another reason.
- Click My employer reported this extra money on a 1099-MISC in addition to or instead of a W-2 for my regular pay.
- TurboTax will guide you through entering income for form 8919 line 6.
- Use the images attached to help finish your entry.
You will then pay only your employee share of social security and medicare taxes.
