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Level 1
posted Mar 15, 2020 12:18:42 PM

Tax Year Prior to 2020: Received 1099-MISC in addition to W2

Wife worked at a bank for a couple months as a customer service rep and received a W2 from her employer but also received a 1099-MISC. She called them multiple times to find out why but now one there seems to know why or for what reason she received a 1099-MISC. How am I supposed to describe this when filling out the questions for the Schedule C since she was a bank employee and not a contractor?

0 3 759
3 Replies
Level 15
Mar 15, 2020 12:27:30 PM

Unfortunately the 1099-misc with an amount in Box 7 will mean that the IRS will be looking for Sch C.  Complete the Schedule as having a business as a bank rep.  Alternatively you could enter the amount in Box 3 where it will be taxed as other income and deal with the IRS when and if they ask why you did not complete SchC. 

Returning Member
Mar 15, 2020 12:36:05 PM

When she started at the bank, she may have been treated as an independent contractor (1099 MISC) and then put on as an employee (W-2). She should enter both amounts in the proper input boxes.

Expert Alumni
Mar 15, 2020 12:50:32 PM

You will be okay if you just treat the 1099-MISC as self-employed income and report it as such. Along with that, you will deduct the necessary expenses for conducting your business. Then you will enter your W-2 as normal under wages and salaries.