What should I do if my boss knowingly issued a 1099 overstating my wages? I asked for them to correct it and they have not done so. They have treated company expense reimbursements as taxable income. The overstatement definitely affects my tax returns. How should I address this on my tax return? Can I report them for misrepresenting my income?
Hi,
To address the 1099 on your tax return, report the amount that is shown on the 1099 form. You can ask for a corrected 1099 form from your boss to try to get it fixed before the 10/15/24 extension deadline.
You can file a complaint with the IRS using Form 3949-A
You may also contact the IRS directly by phone.
If the return needs to be amended later within TurboTax to enter a corrected form 1099, then it can be amended within the TurboTax software. Here is a TurboTax article regarding amending a tax return:
TurboTax How to File An Amended Tax Return with the IRS
If you have an accountable plan, it should be tax-free. If you don't have an accountable plan, it should be on a W-2. An input will be made on Form 8919, and you will pay 1/2 of social security tax. Please refer to this thread response by Opus 17:
Employer gave me a 1099 for expense reimbursement instead of reporting it on my W2
I understand. So if the 1099 I received has the incorrect amount, I am to ignore that amount and put the actual correct amount on my return? They will not match. Do I print a different 1099? Will this cause issues? I can file a complaint. What if the boss never corrects the 1099 to reflect the true amount?
Hi,
No, please enter the 1099 amount on the return, as it is shown on the 1099 that the boss provided to you.
If the boss provides you a corrected 1099, you can amend later.
Perhaps the boss will give you the corrected 1099 before the 10/15/24 extension deadline, so I suggest holding off on filing the return until then. You can discuss this directly with the IRS by phone, or by using IRS Form 3949-A
@julie-a --
Note this IRS rule:
If the individual is considered an independent contractor and does not properly account to the
payer for reimbursed expenses, then any advances or reimbursements are to be included on a
Form 1099-MISC as taxable nonemployee compensation, along with other payments for their
services.