topic 1099-MISC that is not from the actual employer in Deductions & credits

1099-MISC that is not from the actual employer

SMIB — Tue, 14 Jul 2020 16:34:57 GMT

My daughter received a 1099-MISC that was from a law firm or LLC that is NOT the actual company that she worked for. She worked for a small restaurant as a cashier. He first $716 that she was paid (this is NOT tips) came from this law firm/LLC, not from the actual restaurant that she worked for. It is listed as "nonemployee compensation", but as far as she was concerned she was the employee of the restaruant. No taxes were taken out. I have no idea how to proceed on this, I tried putting it in turbotax and it came up with a bunch of questions that I have no idea how to answer.

Bottom line - this seems sketchy to me....

Re: 1099-MISC that is not from the actual employer

TomD8 — Tue, 14 Jul 2020 16:47:58 GMT

The IRS considers "Non-employee compensation" reported in Box 7 of a 1099-MISC to be self-employment income, which is reported as business income on Schedule C of the recipient's tax return. For purposes of reporting that income, the taxpayer is considered a self-employed "business."

An employee receives a W-2, not a 1099-MISC.

Re: 1099-MISC that is not from the actual employer

SMIB — Tue, 14 Jul 2020 17:03:07 GMT

I'm aware of this, hence my confusion. She did not work for this LLC, but they paid her as if she were working for the restaurant - an agreement between the LLC and the restaurant. I don't know how to file this....I'm actually tempted to throw it away and call it even...all this for a lousy $716.

Re: 1099-MISC that is not from the actual employer

TomD8 — Tue, 14 Jul 2020 17:43:13 GMT

Downside is that the IRS gets a copy of the 1099-MISC and their computers will be looking for a matching entry on her tax return.

Re: 1099-MISC that is not from the actual employer

SMIB — Tue, 14 Jul 2020 21:14:49 GMT

Still waiting to hear something I don't know.....which may answer my question. But thanks anyway, I'm heading to H&R Block to get this taken care of....🤐