When you receive a 1099-MISC and the income is recorded in box 7, you have to pay social security tax on the income in addition to federal tax; however, the money the person in this situation received was not "wages, and therefore, the payment should have been recorded in box 3 as "other income", to rightfully make them responsible for only federal tax, which is what has happened to me and how I found this post. I've asked the payer to make the correction, in my case the money received was from a lawsuit settlement, which is also "other income", verified by the CPA doing my taxes, but the payer is ignoring me, so with the deadline coming up and no corrected 1099-MISC, I also need to know what to do.
Thank you to the Intuit Tax counselor who posted the suggested solutions.
