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Received a W-2 and 1099 Misc. from the same company

I recieved a 1099 and W-2 from the same company. I filed the amount on line 7  with my other W-2's on the 1040 form instead of line 21. Was this done correctly?  My educational institution is asking me why I used line 7 and not line 21.
    More information is necessary to answer your question as it depends on what the Form 1099 was for and, to some extent, what block on the Form 1099 (Box 3 or 7) that the payments were entered into.
    • The amount on the 1099 form is in box 7. I am in California and the company is in New Jersy.  I did contract work with them. Does this make a big difference?  Thank you!
    If you did "contract work", and if it was in block 7, it should have been reported on your return as business income on Schedule C, not on line 21.  If the amount is significant, I suspect the IRS will eventually get around to sending you a bill for self-employment tax (the self-employed individual's equivalent of FICA and Medicare taxes) on the payment.

    (It's very difficult, but not impossible, to be an employee and self-employed individual for the same person at the same time.  It sounds like the company is saying you were both.)

    It's also difficult to understand why a financial aide officer at a college, who doesn't really know taxes, would question what is on a tax return - especially as self-employment income would go on NEITHER line 7 or line 21, but on schedule C.  In any event, you can correct your return by filing an amended return transferring it to Schedule C.