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hokumalie
New Member

I was given both a W2 and 1099MISC because my employers didnt start my tax forms until mid-year, so What can I do to not have to pay Independent Contractor taxes?

I Was told when starting my job last January that they would get me a W-45 to sign. Then in July after asking them repeatedly about my taxes, they said They were going to File me as an Independent Contractor. After researching what that would mean to me, I told them i can't work for them if I wasnt being filed as an employee. So they scrambled and finally got me a W-4 to sign. I just recently left that job, and I then recieved both a W-2 AND a 1099MISC tax form, because apparently they didnt file the first 7 months of me working there as an employee like they said they would, but instead filed me as an Independent Contractor like they were going to do from the beginning. What can I do to get this fixed?

1 Best answer

Accepted Solutions
DianeW
Expert Alumni

I was given both a W2 and 1099MISC because my employers didnt start my tax forms until mid-year, so What can I do to not have to pay Independent Contractor taxes?

Yes, we can file the Form 1099-MISC as though it was paid as an employee.  This is completed using Form 8919 and TurboTax will walk you through the process.  Please use the steps below to complete your entry.

As an employee, you are following the direction of the employer about when, how, where and with what tools you will use to do your job.  As an independent contractor you say when, where and how you will do the job they contract you for.

That being said, as an employee, your employer must withhold and then match your social security and medicare taxes.  You can enter your Form 1099-MISC amount as though it was paid as an employee and then you will pay only your share of the taxes.  The IRS will go after the employer for their share of the employer taxes.

Wages from Form 8919 line 6 will go directly to line 7 on Form 1040. See IRS Form 8919 instructions for more information. If your wages were reported by your employer on a 1099-MISC with Uncollected Social Security and Medicare tax instead of on a W-2, TurboTax will guide you through entering the untaxed wages.

If you've already gone through the TurboTax step-by-step interview, jump directly to the entry screen for employee related income on a Form 1099-Misc, follow these directions.

  1. Select Federal Taxes (Personal in the Home & Business edition).
    In Online TurboTax, click Federal Taxes on the selection list
  2. Select Wages and Income, and in the next screen, click I'll choose what I work on.
  3. Scroll down the Your Income Summary screen until you see the Other Common Income group.
  4. Click on the Start/Update button next to the Income from 1099-MISC topic.
  5. Enter the information from your 1099-MISC, then click Continue.
  6. On the Tell us why you received this 1099-MISC screen, click the box next to I got this 1099-MISC for another reason.
  7. Click My employer reported this extra money on a 1099-MISC in addition to or instead of a W-2 for my regular pay.
  8. TurboTax will guide you through entering income for form 8919 line 6.
  9. Use the images attached to help finish your entry.  

You will then pay only your employee share of social security and medicare taxes.

View solution in original post

5 Replies
DianeW
Expert Alumni

I was given both a W2 and 1099MISC because my employers didnt start my tax forms until mid-year, so What can I do to not have to pay Independent Contractor taxes?

Yes, we can file the Form 1099-MISC as though it was paid as an employee.  This is completed using Form 8919 and TurboTax will walk you through the process.  Please use the steps below to complete your entry.

As an employee, you are following the direction of the employer about when, how, where and with what tools you will use to do your job.  As an independent contractor you say when, where and how you will do the job they contract you for.

That being said, as an employee, your employer must withhold and then match your social security and medicare taxes.  You can enter your Form 1099-MISC amount as though it was paid as an employee and then you will pay only your share of the taxes.  The IRS will go after the employer for their share of the employer taxes.

Wages from Form 8919 line 6 will go directly to line 7 on Form 1040. See IRS Form 8919 instructions for more information. If your wages were reported by your employer on a 1099-MISC with Uncollected Social Security and Medicare tax instead of on a W-2, TurboTax will guide you through entering the untaxed wages.

If you've already gone through the TurboTax step-by-step interview, jump directly to the entry screen for employee related income on a Form 1099-Misc, follow these directions.

  1. Select Federal Taxes (Personal in the Home & Business edition).
    In Online TurboTax, click Federal Taxes on the selection list
  2. Select Wages and Income, and in the next screen, click I'll choose what I work on.
  3. Scroll down the Your Income Summary screen until you see the Other Common Income group.
  4. Click on the Start/Update button next to the Income from 1099-MISC topic.
  5. Enter the information from your 1099-MISC, then click Continue.
  6. On the Tell us why you received this 1099-MISC screen, click the box next to I got this 1099-MISC for another reason.
  7. Click My employer reported this extra money on a 1099-MISC in addition to or instead of a W-2 for my regular pay.
  8. TurboTax will guide you through entering income for form 8919 line 6.
  9. Use the images attached to help finish your entry.  

You will then pay only your employee share of social security and medicare taxes.

View solution in original post

markib85
New Member

I was given both a W2 and 1099MISC because my employers didnt start my tax forms until mid-year, so What can I do to not have to pay Independent Contractor taxes?

My 1099-M only has box 3 filled in.
Filing taxes for 2018 and step.6 'i got this 1099-misc for another reason' is no longer and option furthermore step.7 doesn't allow for 'My employer reported this extra money on a 1099-MISC in addition to or instead of a W-2 for my regular pay' as an option. Turbotax is treating this as my own business. How do i complete the same steps in 2019 version?
MikeD11
Returning Member

I was given both a W2 and 1099MISC because my employers didnt start my tax forms until mid-year, so What can I do to not have to pay Independent Contractor taxes?

On your line 6 in explanation, In TurboTax Deluxe, I don't get a box to check saying "I got this 1099-Misc for another reason". None of the choices to check apply for working for someone else. When I check none apply TurboTax assumes I own the business, but I don't. I just helped out my neighbor in his business for 3 weeks in 2019. Help.

 

KrisD15
Expert Alumni

I was given both a W2 and 1099MISC because my employers didnt start my tax forms until mid-year, so What can I do to not have to pay Independent Contractor taxes?

If you work for your neighbor, he is either your employer, and reports your income with a W-2, or you're contract labor and he reports your income on a 1099-MISC. 

If you're contract labor (1099-MISC), you are self-employed.

If you have no expenses, you may use TurboTax Deluxe. 

If you need to claim expenses, you need Home and Business. 

W-2 employees have their FICA taxes (Social Security) paid through their employer. Self-Employed individuals pay their own through filing a federal return. 

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MikeD11
Returning Member

I was given both a W2 and 1099MISC because my employers didnt start my tax forms until mid-year, so What can I do to not have to pay Independent Contractor taxes?

Thanks

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