Hi guys,
So I have this issue, I've been working with a client as an independent contractor for a few months and they asked me for my W-2 to send me 1099 at the end of the year.
The problem is that they've sent me a total of $100k in wire transfers and only about $8k is my actual service fee, everything else is spent on advertising and Google charged me close to $70k already.
So I know that they'll send me 1099 with the whole $100k they wired me, even though they assured me that they'd only send me the 1099 for my actual $8k fee, that's not a problem.
The problem is that I stopped working with them and I have roughly around $20k left in the unspent advertising budget. Naturally, the company wants me to wire the remaining balance back to their account. So I would basically be sending them a refund.
Now my question is do I need W-2 or any other form like that from THEM to send them the money back? Because my worry is that I'll wire them the $20k back and they'll send me 1099 with the full $100k it'll look like I've made an extra $20k and I'll have to pay taxes on the money that I refunded them.
If anyone could help me figure it out, I'd really appreciate it.
Thank you.
