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impactblue51
New Member

Didn't get a 1099 because contractor says they're "filing their taxes late" and gave me sum of wages for 2016. Worried because the number $4000 more than what I have...

So I've been asking my contractor to provide me with a 1099 for 2016 wage and she replies that she hasn't started taxes, would file late, and that she couldn't give me one. She did say just to total up the checks I got that use that amount. So I did the math, then asked her for the total she'll be reporting. It's $4000 more than the number I got.

Poking around I looked at the wages she paid me in 2015. There's a check issued for $4000 dated 01/04/2016 that went to the total wages for 2015 documented on that 1099, which I already paid taxes for. I'm figuring she is counting that check for the 2016 wages. Now I'm super scared.. She said she would check with her CPA...

  • 1. If she does count that $4000, will I have to pay taxes again on it? (I can't afford this :( )
  • 2. Should I still file my 2016 taxes, or wait till I get a 1099?
  • 3. If that $4000 check was dated 2016, why did it get put on my 2015 1099?
5 Replies
IsabellaG
Expert Alumni

Didn't get a 1099 because contractor says they're "filing their taxes late" and gave me sum of wages for 2016. Worried because the number $4000 more than what I have...

You certainly have some serious issues with this contractor.

  •  First of all, she's required to provide you with a 1099-MISC by 01/31/2017. She doesn't get to tell you that she'll give you a 1099 when she's ready. There is a penalty for that.
  • That $4000 should not have been reported in 2015. It belongs on your 2016 return. Cash basis taxpayers report their income in the year that they receive it even if it is in the beginning of the year. 
  • You should file your tax return, and report the income that you received in 2016, including the $4000.

  • You should amend your 2015 return to remove that $4000 and get a refund for 2015.

The IRS does tend to go with what the 1099 says, but in this case if you can produce your records that show that the income should not be on your 2015 1099, you'll have substantiation for your position on your tax return. The fact that she is such a poor record-keeper, and so late with the required information return gives you more credibility than her.I can't say what will happen for certain,but if you have records and checks and bank statements that show your income for each year, you are in a strong position. Otherwise, these 1099's could have you double reporting this income.

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impactblue51
New Member

Didn't get a 1099 because contractor says they're "filing their taxes late" and gave me sum of wages for 2016. Worried because the number $4000 more than what I have...

@TurboTaxIsabellaG  Thanks for the info. It's all pretty overwhelming for me right now. Say I don't report the $4000 since I already paid 2015 taxes on it and my employer does the same thing, would it still be an issue?
IsabellaG
Expert Alumni

Didn't get a 1099 because contractor says they're "filing their taxes late" and gave me sum of wages for 2016. Worried because the number $4000 more than what I have...

Then there would probably be no IRS involvement, because you're both reporting the same thing. It would be incorrect, though. I hope this all works out for you.
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impactblue51
New Member

Didn't get a 1099 because contractor says they're "filing their taxes late" and gave me sum of wages for 2016. Worried because the number $4000 more than what I have...

@TurboTaxIsabellaG Thanks. One more thing.. Is there an incentive for the employer to report more money than was paid for the year?
IsabellaG
Expert Alumni

Didn't get a 1099 because contractor says they're "filing their taxes late" and gave me sum of wages for 2016. Worried because the number $4000 more than what I have...

Sure, because the employer gets to deduct what they pay you. Sometimes the timing of a deduction can result in lower tax to them than if they reported it correctly. It depends on what her return looked like in 2015 and 2016.
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