1099 Misc

Forum|Forum|5 years ago
March 25, 2021
1 reply
14 views

I have a 1099 Misc that is for when employed I declined to receive pay increases until retirement and the 1099 is for that. It should have taxes taken out but doesn't, It DOES NOT fall under any of your choices. Last year I had to talk to someone and this was a lengthy call. He created some entry and it came out on Schedule C Line 9. Year before I kept it as just Misc and I ended up paying a penalty as no taxes were taken from it. Your descriptions of farm work, etc. just doesn't work and there are no expenses.

Thanks - Karen

TurboTax Home & Biz Windows

ColeenD3

Level 15

You said, " I have a 1099 Misc that is for when employed I declined to receive pay increases until retirement and the 1099 is for that."

It is for pay raises that you declined but that were paid to you anyway? That is either W-2 or 1099-MISC income. If reported on a 1099-MISC for 2020, what box is the income in. Were you paid by 1099-MISC instead of 1099-NEC? There seems to be some missing information. Can you clarify?

mabletvlrAuthor

Level 2

It is on a 1099 Miscellaneous Income from. Box #3 Other Income is the only box with a dollar amount in. All other boxes are empty. It should have taxes taken out of it. The one time I used Turbo and put it in as 1099 Misc and also answered all the questions regard farming - self employment negative then no taxes were taken out and I got a penalty. Last year I called and after a very lengthy time a person had to go on to my computer and went thru several steps to put it in with a code. That worked as taxes were taken out.

I want an answer that can be used every year without having to go thru this.

KrisD15

Level 15

I don't think there is an answer to how you report this every year (the way you want to) since it sounds as if the earnings shouldn't be handled this way.

The issue I see is that the amount received is for work you performed as a W-2 employee, in which case your employer should have reported in on your W-2.

Why does this matter?

As an employee, both you and your employer contribute to your FICA tax (Social Security account). The pay and the tax paid is listed on a W-2.

In your case you want the pay listed on a 1099, and it sounds like you are willing to pay the tax (federal income tax and/or FICA ? ) but if you don't file Schedule C, the federal tax could be reported, but the FICA won't be computed correctly. The half the employer pays won't be paid. The half calculated from the self-employment income won't be computed.

The IRS allows for situations where a Taxpayer may get a 1099 and pay income tax on that amount, but not for a situation that occurs year after year. The exceptions pertain to things like prizes, fellowships, and stipends. Not pay earned for working as an employee.

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