W2 employee under a 501(c)3 as bartender

[wldncrzy1971]

As a bartender of a restaurant I have learned they lumped under their 501(c)3, my ex employer put part of my wages on a w2 and part on a 1099 NEC that I should NOT have received! I am not an independent contractor. Nor did I receive any income that was not wages or tips. I was a W-2 employee the entire time I worked there. I never received a bonus, etc that would constitute a 1099 in any way, shape, or form. I think they are again trying to get out of paying taxes on their end. They have a history of not paying for overtime hours and withholding tips from servers and bartenders. How do I resolve this and file my taxes if the ex employer won’t return my calls?

[rjs]

Here's how to enter the 1099-NEC in TurboTax so it will be reported as additional wages. You will have to pay the employee's share of Social Security and Medicare taxes that would have been withheld from the additional wages if they had been properly included in your paychecks. You don't have to contact the employer or get them to do anything.

Enter the 1099-NEC in TurboTax. After you enter it you will come to a screen that asks "Does one of these uncommon situations apply?" Select "My employer reported this extra money on a 1099-NEC but it should have been reported on a W-2." Then click Continue. On the next screen select "I received Form W-2 and this Form 1099-NEC, but all the income reported on this Form 1099-NEC should have been included on my Form W-2." Then just read the next couple of screens and click Continue.

TurboTax will include Form 8919 in your tax return. The additional wages will be reported as wages on Form 1040 line 1g. Form 8919 calculates the Social Security and Medicare taxes that your employer should have withheld. The total of these taxes will appear on Schedule 2 line 6 and will be included in your total tax liability.

[AmyC]

After much discussion, we feel more clarity is needed. So I am going to assume that your w2 is correct and contains all of your earned wages. I believe you are stating you should not have received a 1099-NEC as that is income not received. If this is the case, there are things you need to do. 

1. Report the correct income on your tax return. 
   1. You will need to include all documents received. Carefully enter the NEC, let me give you the steps below.
   2. subtract out the 1099-NEC that you dispute. Follow the steps below.
2. Disclose your position that the income is not taxable on Form 8275, Disclosure Statement - IRS. This will make your return ineligible for efile.
3. Report them on Form 3949-A. See How Do You Report Suspected Tax Fraud Activity?

Since the 1099-NECis not a business, you have to mark:

• no intent to earn money
• mark that the income is only for this tax year, 2023 .
• Otherwise the program will think it is recurring income and a business and charge Medicare and Social Security taxes

Subtract the 1099-NEC
1. Miscellaneous Income, 1099-A, 1099-C, Start
2. Scroll to the bottom
3. Other reportable income, Start
4. Other taxable income?
5. Select YES
6. Description  wrongful 1099-NEC
7. Amount, enter your negative amount 
8. continue

[Edited 3/1/2024| 3:38 PM PST] @wldncrzy1971 If the assumptions are wrong, please reach back out.

[Opus 17]

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@rjs wrote:

Enter the 1099-NEC in TurboTax. After you enter it you will come to a screen that asks "Does one of these uncommon situations apply?" Select "My employer reported this extra money on a 1099-NEC but it should have been reported on a W-2." Then click Continue. On the next screen select "I received Form W-2 and this Form 1099-NEC, but all the income reported on this Form 1099-NEC should have been included on my Form W-2." Then just read the next couple of screens and click Continue.

TurboTax will include Form 8919 in your tax return. The additional wages will be reported as wages on Form 1040 line 1g. Form 8919 calculates the Social Security and Medicare taxes that your employer should have withheld. The total of these taxes will appear on Schedule 2 line 6 and will be included in your total tax liability.

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Turbotax will prepare a form 8919 with code H.  You will pay the employee half of social security and medicare that should have been withheld, but you don't pay the employer share (as you would if you reported this as self-employment).