- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
apparently the operator is treating you as an independent contractor. there is not enough info to determine if this is correct treatment or should you have been treated as an employee getting a W-2.
you might want to complete form SS-8 for your own purposes.
https://www.irs.gov/pub/irs-pdf/fss8.pdf
if you determine you should have been treated as an employee file the SS-8 with the IRS (this should have been done months ago like shortly after getting the 1099-NEC)
Instructions for Form SS-8 (Rev. March 2023) (irs.gov)
and here's guidance from the IRS employee vs independent contractor.
https://www.irs.gov/newsroom/worker-classification-101-employee-or-independent-contractor
************************
if you are an IC, schedule C is required.
the benefit is that IC expenses are deductible against the income. you may further reduce your taxes if you have self-employed health insurance and/or a retirement plan. you would also be entitled to a QBI deduction. the downside is that the self-employment tax is your responsibility.
**************************************
on the other hand, if you deem yourself an employee you need to complete a substitute W-2 from 4852
the IRS says you must take the following steps before filing Form 4852
• Attempt to get your Form W-2 from your employer (it would also have to file an amended 1099-NEC) before contacting the IRS or filing Form 4852.
****************************
if you conclude you are an employee, but the iRS concludes from the info it gathers you're an IC, there would be penalties and interest if your taxes were underpaid by claiming employee status.
******************