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Should I hire a tax preparer or use free turbo tax for my taxes?

I received 1099 instead of a W2 even though I am clearly an employee. I have been using Turbo Tax to file my taxes for free for the last 3 years. It was easy with a W2 but this year I received 1099, so should I use free Turbo Tax or should I hire a tax preparer who can correctly file my taxes using 1099?

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3 Replies

Should I hire a tax preparer or use free turbo tax for my taxes?

If you are "clearly an employee" and your earnings are being reported on a 1099Misc instead of a W-2, you have a bigger problem than what tax software to use.

 

HOW/WHERE  TO ENTER A 1099Misc

https://ttlc.intuit.com/questions/2893392-where-do-i-enter-a-1099-misc

https://ttlc.intuit.com/questions/2584365-am-i-an-employee-or-an-independent-contractor

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

 

https://ttlc.intuit.com/questions/2893577-does-a-1099-misc-mean-i-m-self-employed

 

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

 

 

Why are you "clearly" an employee?  Did you fill out a W-4 for this job? Did any of your pay stubs show tax withheld?  

 

You will not be able to use Free Edition for income reported on a 1099Misc.  

 

If you qualify to use it, there is another full-featured free version of the software:

Try Free File: 

You qualify if your income was $36,000 or less, or $69,000 or less if active duty military, or if you qualify for Earned Income Credit

https://ttlc.intuit.com/questions/1900583-what-is-turbotax-free-file-program

If you switch to Free File you must create a new account and new user ID.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Should I hire a tax preparer or use free turbo tax for my taxes?

What problems will I face if I am "clearly an employee" and my earnings are being reported on a 1099Misc instead of a W-2? 

 

I am clearly an employee because I work at a motel as a front desk with a fixed schedule, I am not an independent contractor. My new employer said he does not have an accountant yet, so he paid me every month with LLC checks for about 4 months of 2019.

 

I did not fill a W4 form as my employer did not ask me to fill a W4. I did not get any paystubs, it was just a check every month.

 

What are the consequences of this? I need help.

Should I hire a tax preparer or use free turbo tax for my taxes?

The "employer" is not withholding tax or Social Security or Medicare--which means YOU have to pay it.  When you are a W-2 employee the employer has to pay half of your Social Security and Medicare, and your half is then deducted from your wages each pay period, and shown on your W-2 in Boxes 4 and 6,  Since your "employer" did not do that, YOU get stuck with paying 15.3% of your earnings for that, as well as ordinary income tax.  He is either pulling a fast one on you, or he is very uneducated as to how to handle having an employee, but the impact on you is the same either way.

 

When you enter this into a tax software program, you are in for a nasty surprise.  You are going to owe.  

 

Please click the links already provided to you and read them carefully.  You are right.  You need help.  And maybe a new job.   it is a good thing you are finding this out now after only four months instead of a year into this job.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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