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fatdevil
New Member

Son's employer pays and reports on a 1099 but son is considered a full time employee. He is not a contractor. Clocks in and out. How does he file and is this illegal?

Son's employer pays and reports on a 1099 but son is full time employee. How does he file and is this illegal? Required to have a set schedule and uses employers computer system and helps customers. Never paid overtime. 
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3 Replies
HelenaC
New Member

Son's employer pays and reports on a 1099 but son is considered a full time employee. He is not a contractor. Clocks in and out. How does he file and is this illegal?

If you believe you may be an employee of the payer, see Publication 1779, Independent Contractor or Employee for an explanation of the difference between an independent contractor and an employee. For more information on employer-employee relationships, refer to Chapter 2 of Publication 15, (Circular E), Employer's Tax Guide, Chapter 2 of Publication 15-A, Employer's Supplemental Tax GuideIndependent Contractor (Self-Employed) or Employee? and Tax Topic 762, Independent Contractor vs. Employee.

The boss is also not paying payroll taxes or having to provide benefits. 

If payment for services you provided is listed in box 7 of Form 1099-MISC, Miscellaneous Income, the payer is treating you as a self-employed worker, also referred to as an independent contractor.

  • You don't necessarily have to have a business for payments for your services to be reported on Form 1099-MISC. You may simply perform services as a non-employee.
  • The payer has determined that an employer-employee relationship doesn't exist in your case.

Your son will have to file "as-if he has a business". The good thing about that is, your son will be able to deduct self-employed business expenses.

  • However, regularly commuting to and from a fixed office wouldn't qualify

See Where do I enter a 1099-MISC? and What tax breaks can I get for my 1099-MISC? and What self-employed expenses can I deduct?

[Edited 4-9-19|11:05 am PST]

Son's employer pays and reports on a 1099 but son is considered a full time employee. He is not a contractor. Clocks in and out. How does he file and is this illegal?

One correction. Driving to and from work is commuting and not a business mileage deductible expense.
HelenaC
New Member

Son's employer pays and reports on a 1099 but son is considered a full time employee. He is not a contractor. Clocks in and out. How does he file and is this illegal?

Thank you. bsch4477 is correct. Regularly commuting to and from a fixed office wouldn't qualify
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