I didn't receive a 1099-MISC form. What to do?

[indypilotcfi]

Say I did work that constitutes me receiving a 1099-MISC but I never receive it from the client or the client refuses to give one (or just isn't smart enough to know that they are supposed to file one), how would I handle reporting this income?

I know the exact amount this person has paid and have receipts to prove it. I've read that I can just fill in the 1099-MISC information as if they have given me one, but, I don't have their EIN or Social Security Number. Can either of those be left blank?

Should I file this clients payment as "General Income" on TurboTax?

[Scherazade]

This is a client, so you would report wages as if they had given you a 1099.  Wages may not trigger a 1099 if they are under $600 (or current threshold), however, you are still responsible for reporting all income whether a 1099 was received or not.  If this is income you earned as an independent contractor, you would report it on Schedule C.

You do not need to provide a copy of the 1099 to the IRS.  In your state, it may be required, however, you can leave it out since one was never issued.   You should never create one for yourself as the contractor.  That is the Payer's responsibility.  As long as the income reported on your taxes is equal to or greater than what was reported for you by Payers, you should be in good shape for both your IRS and State taxes.  If you are ever audited, you will need to show that all income was reported, no matter how small or if it met individual payer thresholds.

[indypilotcfi]

Thank you for the reply. I guess my confusion is where do I put it in TurboTax. There are two places I could put it: under "1099-MISC Income" (Business income reported to you on Form(s) 1099-MISC) or "General Income" (Business income, including income reported on Form(s) 1099-K). I'm not sure which of those two I would put it on. I can put it under "1099-MISC Income" but I would need to make "Payer's Employer ID No" and/or "Payer's Soc. Sec. No." blank since the payer didn't provide me with either. If I put it under "General Income", it just asks for the payer and the amount.

Any idea which I should put it under?

[Scherazade]

hmmm, I will have this issue myself, in this case...  Let me take a look...  Which version of TTax are you using?

[indypilotcfi]

Home & Business.

[Scherazade]

OK, use the General Income under the Business section.

[Scherazade]

>>If you have income from sales or services that was not reported on Forms 1099-MISC or 1099-G, enter it below. You can also use the fields below to enter income reported to you on Form(s) 1099-K.  

Simplest solution.  Net effect would be the same.

[indypilotcfi]

Perfect! I figured they both will show up on the Schedule C (as I've tried both and the return was the same) but I wanted to make sure it ended up in the right spot.

Thanks so much for your help!

[Scherazade]

Sadly, you cannot preview schedule C.  You can preview the 1040, however.  Just make sure it does not pop up there somehow.  Not all expenses entered in the business section will be Schedule C. but I am pretty sure all income will be.

[moon0101]

If you choose insurance from Obama care, you will have to pay $1000.00 for your coverage if the employer doesn't send a 1099 misc showing that income should have been reported differently.  I know you have to pay income tax on it, however it would show as bonus or vacation pay not regular income. It would satisfy your health insurance so you wouldn't have to pay that back.

[moon0101]

$1000.00 a month

[Scherazade]

I do not get 1099s from all my clients since they are under the threshold and/or otherwise not required.  I do have a ACA policy from California.  For proof of income, I have produced an income statement from my business and given them a copy of my tax return.  That was enough.  I did not have to prove where the income came from by way of 1099s which totaled to the income.