1099-NEC

[gymmomamc]

I received a 1099-NEC from a place I worked at as a temporary employee through a temp agency. I was paid by the employer, not the temp agency. The employer did not take out taxes or put me on their payroll. From the IRS rules I read, I would not be considered an independent contractor and would be considered an employee.   How do I file  this? Turbo Tax asks if  this work is from a sporadic activity or hobby? It is a temp job with my same line of work that I usually do for my regular employer. If I check  off these were employee wages than does the IRS   go back after the company for not putting me on a payroll for 2 temporary days?

Should the employer have not issued me a 1099-NEC? 

[GeorgeM777]

Because you received a 1099-NEC, the company that paid you does not consider you to be their employee.  Whether you are an employee or independent contractor is a question of fact.  As the IRS has previously stated,  

"In determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered....There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another."

Here is the link to the IRS webpage from which the above quoted information was obtained.

Independent Contractor or Employee

A very important factor in determining whether you were an employee versus an independent contractor is the level of control the company had over you and the work you performed.  In this regard, the IRS has stated,

"Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed."

Employee (Common Law Employee)

If you determine that this was not self-employment income, but rather income you earned from an activity that was not regular or continuous or not part of your trade or business (in other words you were not in business for yourself), then you can report the income as Other Income.

If you are using TurboTax online, the steps described above are very similar to what you need to do to report your income as "other income."  In TurboTax online, go to Income & Expenses, scroll down the page to the last item Less Common Income, select Miscellaneous income, then from the list select Other reportable income.  Again you will have to enter the amount you earned plus a short description of the work you performed. 

If you are using TurboTax Online, here are the steps to follow to preview your Form 1040:

       Open or continue your return.

1. Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
2. With the Tax Tools menu open;
3. Select Tools.
4. Next, select View Tax Summary in the pop-up.
5. Then Preview my 1040 in the left menu.

@gymmomamc

[gymmomamc]

This income was in my regular occupation/ line of work. The company I temped for does have the level of control as they provide all the tools I need to perform my job. Also my state ,(PA) ,regulations for my license state  I cannot practice independently, I am under direct supervision of a doctor.  

What do I do?

[JulieS]

Since you received a 1099-NEC, but you are clearly being treated as an employee, you should file Form 8919 and SS-8 so that you can pay your taxes that were not withheld and report your employer to the IRS. 

Here is how to do that in TurboTax:

1. Select Federal on the left side menu.
2. Select Income and Expenses toward upper left.
3. Expand/ scroll down to the bottom of the list and find, Less Common Income, expand the section.
4. Scroll all the way down and select Miscellaneous Income, 1099-A, 1099-C.
5. Select Other income not already reported on a Form W-2 or Form 1099
6. Answer the first question Yes.
7. Click Continue until you get to, Any Other Earned Income, answer Yes and click Continue.
8. Select Employee compensation that was not reported on a W-2, click Continue.
9. The next screen explains the process of filing Forms 8919 and SS-8, click Continue.
10. Fill out the next screen as completely as you can. For reason code, select G.
11. The next screen will give you a link to Form SS-8, which is not part of TurboTax. Please complete that form as well as filing your tax return.