Solved: All payments from a 1099-MISC were assigned to my employer. How do I show that those payments were not paid to me and that the amount taxable to the recipient is $0.00?
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ddvann79
New Member

All payments from a 1099-MISC were assigned to my employer. How do I show that those payments were not paid to me and that the amount taxable to the recipient is $0.00?

I am an employee of a company where individuals contract with a state agency directly. However, I assigned all payments to my employer and I never saw any of the checks from the state agency. I received a W-2 from my employer which includes my share of the payments from the state agency. I also have a copy of the assignment agreement form. My employer's accountant stated that we should report the 1099 income received by the agency, less amount reported by my employer to result in an "amount taxable to recipient" of $0.00. After going through TurboTax's prompts, I find nowhere that allows me to do this.

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Accepted Solutions
BarbL
Employee Tax Expert

All payments from a 1099-MISC were assigned to my employer. How do I show that those payments were not paid to me and that the amount taxable to the recipient is $0.00?

On the Business tab, you will enter the 1099-MISC in the Income section, as the IRS is expecting to see the full amount reported on your business return.  In the Expenses section, you can enter the amount paid to your employer as Commissions.  That will zero everything out for you.

To go directly there, select the Business tab, then "I'll Choose What I Work On". On the following page select "Profit or Loss From Business".  (See attached screenshot.)  After a few initial questions regarding your 'business' income, you will land on the page to select Income or Expense items.

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BarbL
Employee Tax Expert

All payments from a 1099-MISC were assigned to my employer. How do I show that those payments were not paid to me and that the amount taxable to the recipient is $0.00?

On the Business tab, you will enter the 1099-MISC in the Income section, as the IRS is expecting to see the full amount reported on your business return.  In the Expenses section, you can enter the amount paid to your employer as Commissions.  That will zero everything out for you.

To go directly there, select the Business tab, then "I'll Choose What I Work On". On the following page select "Profit or Loss From Business".  (See attached screenshot.)  After a few initial questions regarding your 'business' income, you will land on the page to select Income or Expense items.

View solution in original post

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