If I received a 1099NEC from a former employer and have a contract for that work, is it considered work done for a former employer?

[MinhT1]

If you have a contract without your former employer as a contractor, you should answer No to the question whether it is work done for a former employer. You are now working as an independent contractor.

[asant911]

Thank you for your response.  I checked the incorrect box  to that question on my 2020 taxes and had a pretty hefty liability,  Should I amend that return and indicate NO as the answer to that question?

[asant911]

The contract I have is from a former employer but as a contractor, not a W2 employee.

[Opus 17]

I'm not sure if you are being asked the test question for self-employment, or a question that would relate to improperly being treated as a contractor when you should be an employee.  

Generally, you should not get a 1099-NEC and a W-2 from the same employer in the same year, they should put everything on the W-2, and they are responsible for their share of social security and medicare tax.  If they separate you and then "rehire" you as a contractor, they may be trying to cheat you on taxes, benefits and other things.  You may want to read this.

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-o...

However, if you legitimately separated from service, and started doing contract work for them, and the working conditions changed to the point that it really is legitimate contract work and not a scam by them, then it's ok to have a 1099 and W-2 in the same year.

There are two questions you may be asked.  When you enter the 1099-NEC, you are first asked a series of test questions to determine if you really were self-employed or if this was something else like a hobby.  Questions like, "is this similar to your regular work", "did you intend to make a profit" and so on.  If that's where you are, go ahead and answer yes, you were a contractor trying to make a profit so this is self-employment income.

There is also a box you can check on a page of special circumstances for "this was from my employer and should have been included on my W-2."  This brings up a special form to recharacterize the income as employee income instead of independent contractor income.  You should not check this box unless you think your company is trying to cheat you by reclassifying you as a contractor.  

[asant911]

This is the question I am asking about.  I was a former employee but my position was downsized, I was then contracted by them for seasonal work.  My contract has specific start, end dates and the amount of my stipend.

I checked box two in 2020 but I don't think that was correct and if it wasn't, I would like to amend that return.

Let us know if any of this work was for an employer where you used to be an employee before becoming an independent contractor performing essentially the same job. Learn More

None of this work was for a former employer.

All of this work was for a former employer.

Some of this work was for a former employer.

[AliciaP1]

If your former employer is still in control of what will be done and how it will be done, you are still an employee, although now a seasonal employee and should answer "All..."

If your former employer gives you a general project to do and just wants the results, then you are a contractor and therefore self-employed and should answer "None..."

See Determining Whether the Individuals Providing Services are Employees or Independent Contractors for more information.