FORM 8919 WITH 1099- MISC

[hector805torres]

I NEED TO DISPUTE A ERROR. MY EMPLOYER CLASSIFIES ME AS A 1099 MISC BUT HE ALSO GAVE ME A W-2. IT WAS NOT A BOUNUS OR PRIZE, IT WAS MY PAY ROLL CHECK

[ChristinaS · Accepted solution]

If you believe you should have been treated as an employee and not a contractor, begin the process to file Form 8919 here:

• Federal Taxes
• Wages and Income
• Other Common Income
• Enter 1099-MISC for the time being
• On the next screen, just briefly describe your work (i.e. Sales, landscaping, etc)
• Immediately after the 1099-MISC entry you'll see checkboxes, including "your employer reported on a 1099 but it should have been on a W2"
• If you have not gotten a response for SS-8 yet, just click as much on the next screen
• Your return will now include 8919

You ALSO need to also mail SS-8 now, independently of your tax return. You can wait for that response, or go ahead with the 8919 now. If the IRS agrees that you were an employee, your return will not need to be changed.

It may take a while to get the SS-8 response, so go ahead with the 8919. Did you speak with your employer about this? If you still work there, you should give them the opportunity to fix their mistake.

https://www.irs.gov/pub/irs-pdf/fss8.pdf

You will mail that to:

Internal Revenue Service

Form SS-8 Determinations

P.O. Box 630 Stop 631

Holtsville, NY 11742-0630

[hector805torres]

I spoke to my employer about this issue. He denied it being a mistake and that I was wrong about the form being a contractor return. So I'm going to use form 8919. And submit the ss-8 form after I submit my taxes because the response time is unknown from the IRS.

[ChristinaS]

What was your employer's reasoning? Did you go from 1099 to W2, or was it a 1099 while also being on payroll?
Just make sure you send SS8 soon.

[hector805torres]

Employer said it was for pay roll checks. It was a 1099 while also on pay roll

[hector805torres]

I submitted my ss8 after. Will that be a issue?

[ChristinaS]

No,you just need to have the SS8 out around the same time.

[pd1459]

I am still confused I received a w-2 from a law firm that handled a class action suit for an employer I worked for a few years ago (which they sent a settlement check in 2020, and it shows the taxes were taken out. The same day I received a 10-99 Misc for the same amount however no taxes were taken out. In turbo tax 2020 I filled out the 10-99 Misc and checked the box for a class action suit and getting a error about self-employed do I need to get this IRS form 8919 and fill it out? Is this form in the turbo tax 2020 that I can fill out and complete my filing. Thanks

[Cynthiad66]

First, let's make sure you are not including the amount twice.  Did you enter the W-2 amount and/or the 1099 MISC?  If so you only need to enter the amount once.  If you are unsure which is the correct one, contact the Law firm to clarify.  Anyway,  in order to avoid self-employment tax you must enter the Form 1099MISC as Other Income.  

Her is how to add "Other Income:

Legal settlements are reported as "Other Taxable Income." You may or may not receive a 1099-MISC reporting the income. Regardless, this is how you should enter it:

• Select Federal Taxes
• Select Wages and Income
• Scroll down and select Show More at Other Common Income
• Select Start/Update next to Income from Form 1099-Misc.
• Answer Yes to the question Did you get a 1099-MISC? (even if you didn't get one).
• Complete the top part and then enter the award amount
• Enter a reason for the 1099-Misc.
• Select "This was money from a lawsuit settlement" on the "Does one of these uncommon situations apply?" screen

Interest earned on a lawsuit settlements is taxable income and should be entered as a Form 1099-INT. Punitive damages are taxable and should be reported as “Other Income” on line 21 of Form 1040, even if the punitive damages were received in a settlement for personal physical injuries or physical sickness.

You do not need to complete Form 8919.  Use Form 8919 to figure and report your share of the uncollected social security and Medicare taxes due on your compensation if you were an employee but were treated as an independent contractor by your employer. By filing this form, your social security earnings will be credited to your social security record.

[pd1459]

Cynthia thanks for the response the subject (i submitted my ss8 is not for me that i can tell) but to clarify my problem I did get both forms the w-2 that took out all the taxes out and the 10-99 misc which had the same amount as the w-2 however no taxes were taken out. You stated I only need to fill out one of the 2 so I used the w-2 since taxes were properly taken out do I just ignore the 10-99 Misc? you also stated to call the law firm to see which one i should use, but it would make sense to use the w-2 since the taxes were taken out. Do I need to still call them?  If I go trough the steps you stated for Other income then I would be interring the income twice. I don't want to do that right?

[JotikaT2]

I would not ignore the 1099-Misc form.

You will need to do at least one of the following:

• Contact the law firm and ask if they can issue a corrected 1099-Misc form showing you did not have this income.
• Or you should enter it and then back it out on another line item with the description "Reported on W-2 Form"

If you choose to report it and back it out, you can do that in the federal section of the program as follows:

1. Select Income & Expenses 
2. Go to the  All Income section and select Less Common Income 
3. Select Miscellaneous Income

4. You will then select Other reportable income to enter your income from your 1099-Misc.  Be sure to mark that it was not earned as part of business.

5. Add another 1099-Misc and report the offsetting amount as a negative amount to back it out.

This will ensure your tax return matches the items already reported to the IRS and potentially avoid any delays in processing your tax return.

[JustConfused44]

Hi @Cynthiad66 !

I just came across your comment that is in the general area I am dealing with and I was hoping you could help. 
I am trying to head to the post office today with my form but no one can give me an answer and the IRS phone line just sends me to there website which I can't find an answer. 

I am filing a 1040-X form for the 2017 tax year. During that time I received two W-2s and a 1099. The company that I received the 1099 from classified me as an independent contractor. I worked for them 2017-2019 and then realized I really should have been an employee. During the years I worked for them I filed my 1099s on a Schedule C or C-EZ and paid my taxes. I have already filed my SS-8 form (I actually have to resubmit it due to not putting a N/A) for worker determination.

I am struggling with if on the 1040-X would I just enter the amount from the 1099 as wages? And if that is the case do I need to file a form 8919 for uncollected social security and medicare with the 1040-X or not. I am owed money back but the amount will change based on the 8919 form. I also do not see a way to enter the 8919 information on the 1040-X form. 

Thank you for any insight you or anyone else might have!

[JamesG1]

Not much time left, is there?  I understand.  I just mailed an amended 2017 tax return myself. 

See this Best Answer.

In TurboTax Online, click on the Search magnifying glass in the upper right hand corner.  Enter '8919'.  Click 'Jump to 8919'.

In the 2020 tax return, I was able to generate the employee side of your payroll taxes but it was reported on IRS Form 1040 Schedule SE, not IRS Form 8919.  Do not have 2017 tax return readily available to test.

You add this income.  Remove the 1099-Misc self-employment income.  Hopefully, there is no other self-employment and the tax is reported cleanly.

Hope this helps.