(I read on another post that when you use your personal vehicle for work that it can be as if you are renting it to your employer versus being classified as self-employed. It’s frustrating that my husband’s employer decided not to take taxes out and 1099 us for vehicle reimbursements. Is there an easier way than having to file like we are “self-employed” when we aren’t? We paid for tires, repairs, and even insurance on his vehicle used for work plus all the miles racked up.)
Update: It’s been brought to my attention that I really wasn’t clear here. I left out a bunch of details. My husband has worked for a company for over 10 years. They had provided company vehicles up until last year when they instead offered a car allowance to my husband. He purchased a vehicle and covered his own auto insurance and maintenance in 2021. Yet, we did not know they were not taking out taxes and they were going to 1099 us at the end of the year. So, now when I try to fill out my tax return and put in the “other income”, we are being charged self-employment tax when we are NOT self-employed. It kind of defeats the purpose of the car allowance when seeing how much we will be charged. Does anyone know what my husband’s employer would need to do to amend the W2? I’d like to have it solved and say, “Ok, this is all you have to do…” Everyone is under a lot of stress.
If I can’t get it amended, I still don’t understand how to enter the income to where it doesn’t trigger the system to think we have a business. Or are we forced to be considered “self-employed” ? I am not trying to avoid paying taxes. Yet, I don’t want to pay more than I should. Hope that makes sense.
