topic Can a company refuse to give me a 1099 in Get your taxes done using TurboTax

Can a company refuse to give me a 1099

crnk3 — Wed, 05 Jun 2019 23:03:25 GMT

I am working for a company full time. on the side I teach classes, some are for the same company that I work for. but they are not part of my normally scheduled job. before I went to work for this company full time I taught classes for them and got 1099. now they are telling me that any and all money that I make from them has to be placed on my w2 and they placed it under other pay. since I don't have a 1099 I cant file my business taxes...or can I. Please help me figure this out.

There is no "other pay" box on a W-2. The only place to e...

Texas Roger — Wed, 05 Jun 2019 23:03:26 GMT

There is no "other pay" box on a W-2. The only place to enter income other than allocated tips on a W-2 in in box 1. Where exactly are they entering the income on the W-2? Are they withholding social security and medicare taxes from it and paying the other half just as they would with your wages?

It sounds like they are treating you as an employee for all your income. If so, you are no longer "self employed" and would not file a Schedule C for self employment income.

My bad you are right was at work last night and wrote it...

crnk3 — Wed, 05 Jun 2019 23:03:27 GMT

My bad you are right was at work last night and wrote it hastily. other pay is how they listed it on my paycheck stub. please see further question below

They are doing it right. if you are a W-2 employee, and a...

Hal_Al — Wed, 05 Jun 2019 23:03:29 GMT

They are doing it right. if you are a W-2 employee, and additional pay should be  on your W-2, not a 1099*.
If this employer was your only side business client, you effectively no longer have a business. Your expenses, for this  additional work can only be deducted as job expenses on schedule A and not business expenses on schedule C.
You are allowed to deduct your job expenses, subtracting what you were reimbursed (do not subtract your reimbursement if it was included on your W-2 as taxable income). TurboTax completes form  2106, which  then carries to Misc itemized deductions on Schedule A. The problem with this is that you only get to deduct that portion of  your misc deductions that exceed 2% of your AGI. and then only if your total  itemized deductions exceed the standard deduction.  (2% rule explained: https://ttlc.intuit.com/questions/2902781-what-is-the-2-rule)

In TurboTax, enter at:
Federal Taxes Tab
Deductions & Credits
-Scroll down to:
-Employment Expenses
-- Job related expenses

*Depending on how unrelated the activity is to your regular job, it might be OK if they gave you a 1099-Misc, instead of putting it on your W-2. That would allow you to deduct your expenses, directly. But, you would have to pay the employer share of FICA (7.65% of the pay).
Most of the complaints, we see in this forum, are for the opposite situation. The employer pays the extra work on a 1099-Misc, forcing the employee into paying his own FICA and paying more for tax preparation.

If you have other clients, you still prepare schedule C,...

Hal_Al — Wed, 05 Jun 2019 23:03:30 GMT

If you have other clients, you still prepare schedule C, for that income. But, the expenses for this particular client (your W-2 employer) must go on schedule A, not schedule C.

My business is a education business, I am a SCUBA - Instr...

crnk3 — Wed, 05 Jun 2019 23:03:31 GMT

My business is a education business, I am a SCUBA - Instructor, EMT- Instructor, AHA: ACLS,PALS,BLS - Instructor. I work as a ER Nurse. I have filed my business taxes for several years now, I have all my Assets: home office, vehicle, computer, etc. Expenses: continuing education, membership dues, periodicals, and various other expenses. Granted this year I worked mostly as a Nurse, and most of the classes I did teach were AHA classes ... and those classes are attended by nurses but they are not limited to nurses, all medical personnel are required to take BLS (CPR) Furthermore these classes are open to the public not just the hospital I work at (although they did host most of the classes I taught this year).

So to rephrase my question; do I have to loose my education business because I get a w-2? And is there any benefit to not having my business?

Do you have other clients, that PAY YOU, other than your...

Hal_Al — Wed, 05 Jun 2019 23:03:33 GMT

Do you have other clients, that PAY YOU, other than your W-2 employer? If yes, you continue to file a business (add Schedule C to your return). Otherwise, no. Any out of pocket expenses go on schedule A.
From what you describe, it is your employer that offers the courses to the public, not you.

Yes I do have other customers that pay just not a lot thi...

crnk3 — Wed, 05 Jun 2019 23:03:34 GMT

Yes I do have other customers that pay just not a lot this year. However the same company that I work for issued several checks to me as a contractor during 2016 but they say that since they only paid me $550 that way they don't have to file a 1099. so on top of it all is that income just lost or unreported

The $550 is still business income, even though you didn'...

Hal_Al — Wed, 05 Jun 2019 23:03:35 GMT

The $550 is still business income, even though you didn't get a 1099-Misc. The fact that you have other paying clients mean you can still deduct expenses on schedule C.]You'll need to do good book keeping to separate your business expenses from your Job expenses, if any.

ok but without my earnings from the classes I taught my b...

crnk3 — Wed, 05 Jun 2019 23:03:37 GMT

ok but without my earnings from the classes I taught my business will show a big loss this hurts the value of my business

The loss is deductible against your other and you will pa...

Hal_Al — Wed, 05 Jun 2019 23:03:38 GMT

The loss is deductible against your other and you will pay no self employment tax, since you have no profit. The business you describe (a small sole proprietorship dependent on your labor) is not the kind that gets valued.

Bottom line for you: is that your company is doing it right. You do not have the option of reporting that income anywhere else except line 7 of form 1040 (or 1040A). You do have the option of asking them to pay you as an independent contractor. But don't be surprised if they say they are not allowed to do it.