Does a self-employed husband need to issue 1099-MISC to his wife if the wide helped him on occasions at his job with his work?

ionel_4_2006 — Tue, 04 Jun 2019 00:22:37 GMT

Husband=Self employed independent contractor
Wife=Works as full time employee for a company, received W-2

Wife has worked a few days with the husband at one of his job sites for one of his customers. The husband received one check on his name for the entire amount of the work that was provided.

The husband and wife share the same bank account in which the check was deposited, and they file the taxes as "married filing jointly".

Does the husband need to provide the wife with a 1099-MISC for her part of the work?

It depends. If the wife is considered as an independent c...

PhyllisG — Tue, 04 Jun 2019 00:22:39 GMT

It depends. If the wife is considered as an independent contractor, then the husband will need to issue a Form 1099-MISC if Box 7 is completed and the wife's yearly income was $600 or more. A Form 1099-MISC is not required to be filed or furnish if the amount is less than $600. However, the wife is required to report her self-employed income on the Form 1040 Schedule C or C-EZ and claim any business expenses related to the self-employment income.

If the husband considers the wife has an employee, then he will need to provide her with a Form W-2. He will also need to prepare the applicable employment tax returns (e.g. Form 941, 940) that is related to the W-2 income. The reason is because the wife is subject to the applicable income tax withholding, Social Security and Medicare taxes if she is being treated as an employee.

To ensure that the husband is in compliance with the tax laws, he will have to carefully determine if his spouse is an employee or an independent contractor. I have provided an Internal Revenue Service link that will assist him in making the determination, Independent Contractor (Self-Employed) or Employee?

topic Does a self-employed husband need to issue 1099-MISC to his wife if the wide helped him on occasions at his job with his work? in Get your taxes done using TurboTax

Does a self-employed husband need to issue 1099-MISC to his wife if the wide helped him on occasions at his job with his work?

It depends. If the wife is considered as an independent c...