My neighbor just informed me that her current employer (she is a hairdresser) where she earns tips plus $12.50/hour has informed all employees that he is going to continue paying them $12.50/hour but now considers them contractors and that they must complete a 1099. He also informed them that they are now responsible for paying their own taxes (which he previously paid over and above their salary) and that he is dropping health benefits). He owns six franchises nationwide hair salons. She will report to work when scheduled, use his appointment system, but she's not absolutely certain if he will continue to provide supplies. Is this legal for him to suddenly switch from W-2 employees to 1099 employees but continue to pay them the same hourly wage? Is there someone she should report this to, etc.?

To anon1906: Depends on your status. You can either be chosen to be taxed here in USA using an agent or show your foreign earned income in your Indian tax returns.

Does an issuer of a w1099 have to pay workman's comp?

I received a 1099 form for $70,000. Does the issuer pay workmen's comp on me? He always tells me that he does. If I pay my own taxes and i'm listed as an independent contractor why would he be paying for workmen's comp? thank you.

Im a freelance writer in a website. if they give me a 1099 Form and I only earned $200 for this year, do i need to pay tax? and i heard that for those you earned $600 above will get that 1099 form. can you elaborate on the 1099 Form please.

I co-owned some properties with a friend. He bought me out and paid me in cash. He is telling me that he has to send me a 1099 form. Is this correct? thanks

I work for a big hotel as security and they made me fill out a 1099 when i started am i considered a contractor becus of this? zfan 1

A friend received a judgment for damages against a homebuilder contractor for damage to his water pipes.

The homebuilder insists upon sending a 1099 with payment of the judgment. Is a 1099 appropriate in such a case?

what kind of taxes are taken out of a students internship pay check for the summer? I filled out a 1099 and a W-4? I only work 23 hours a week for probably 8 weeks.

I am thinking about doing a quick sale on a townhouse. Do my husband and I have to pay back taxes once receiving a 1099 form from the bank?

Our personal residence was foreclosed in 2008 by our first. We abandoned the property 5 months before the foreclosure. We had a second mtg on the house. We received a 1099A from both the first and second mtg companies. Is this a cancellation of debt because I see the example on IRS website of a 1099C actually says cancellation of debt and shows an amount cancelled. We see nothing of cancellation of debt on either of the 1099A's, nor have we received any correspondence as to cancellation of debt.

surely all your questions are not valid since the forms are voluntary and not backed up by any law.

How would I go about giving a 1099 form who has helped me with my services? Do I need his social or does he fill out the 1099 form and give it back to me?

I am an independent sales rep for a company that just filed chapter 11. I normally get 1099's from them showing their payments to me. They owe me several thousand dollars. Does my 1099 status affect my creditor status? Am I to be treated more like an employee or do I have to wait in line with all the other creditors?

to anon31997: I believe the previous threshold for 1099s was $400. By that I mean that any independent contractors who received over $400 in a given tax year are supposed to get a 1099.

Sorry, but I don't know when that limit was increased to $600

Was $600 always the minimum amount that was required before a 1099 was to be paid? If not, how much was it before, and when did it change to $600?

Do I have to send my 1099 to my state's tax department?

I work for a company that gives me a 1099 yearly.

If I were to lose my job because of no work

would I qualify for unemployment?

This worries me a lot since I am 58, live alone and live from paycheck to paycheck.

This guy hired a friend and I to work on his buildings- The guy gives one check for the both of us and was told that I was going to get a 1099? How do I go about this when there are two payees on one check- which the check is in my name?

What should I do? I am not charging this guy a higher rate. Should I tell him two checks? or what? I cannot pay the taxes for the both of us.

I just got an offer to work for a small company

and they want me to sign a paper that says that

I'm going to pay my taxes in the end of the year

when i receive my 1099 and I'll get a full pay check now. I just want to know when I pay my taxes do I wait until the end of the year and pay them all together and how much I should save every week

if I make $1000 a week. I'm married. thank u

Hi,

I've been selling training materials and receiving payments over PayPal. Its not a registered business, I just sell online and make a little extra income for myself. I've managed to make about $150/week. How does this 1099 form apply to me?

I've just started this new job in January '09 as an independent contractor. My questions are how much do I set aside for taxes when I get paid per month and should I pay my taxes quarterly or wait until the end of the year? Can I still pay my taxes quarterly if I only receive my 1099 from my work at the end of the year?

I worked with a company for a month or so and was issued 4 checks with a total of $1,500. They did not declare this on their taxes and I did not receive a 1099. They offered to give me a 1099, should I?

I was an independent contractor last year until the place I worked at was sold. Once that happened, I was let go. Now, I have received a W-2 form, but no 10-99. I called and was told they weren't going to do those, they didn't exist. What should I do?

I am a 3rd country National earning income (for services rendered overseas)from from a US-based firm operating overseas. Is my US employer mandated to fill in a 1099 for me? Should I receive a 1099?

Currently my friend asked me to give him my SSN so he can send me a 1099. On 2008, my friend has asked me to help him working a business issue. We made trips to other country. I used my personal checks and credit cards to pay for tickets and other expenses. I got reimbursements from him. I did not make any money from the business. I was just helping. Would you please let me know should I get a 1099 for the reimbursements?

Thank you!

I received an out of settlement 1099-Misc, they placed the amount in Box 7, no matter what I do Turbo Tax wants to move it to Box 3 and states I should get a corrected 1099 from this ex- employer.

Is Turbo Tax correct, because I really do not want to have any contact with this corporation ever again!

My husband and I had to do a quick sale on my home.

The bank accepted the offer and excused the balance that was owed on my mortgage. We received no money on the sale of the home.

We received a 1099. Do we have to claim the difference between the total and what was received?

They said it was paid off.

Thank you billerica

My employer has been paying me as independent contract for 14 months. I confronted him about this and made him pay his share. He wrote me a check for the back taxes. By the way, he has been paying me weekly by check the entire 14 months.

Then I find out that he doesn't have Workman's Comp. on me and the other 4 employees. So, now they're auditing him.

In the meantime, he has retaliated by cutting 20 hours out of my work week. He knows I'm the one who called.

I qualify for unemployment, but can't get it because, of course, there is no record of him paying unemployment taxes.

I can't do anything because he has under 15 employees.

I did report him to the IRS though using the 3949A.

Does an employer have to send or postmark a 1099 by a certain date? Someone I did "off the books" type work for told me she was not going to give me a 1099 but I am not sure and I thought it was by January 30th.

I belong to a non-profit organization. We hire people to teach courses. Are we required to provide these individuals with 1099's at the end of the year?

Where are the answers to the above questions? I received a 1099 from my property management company for the income they retrieved for me. Is that the strangest?

I am a parts manager and buy parts from suppliers. I have a supplier that has 1099 me for gifts they sent to me in the form of gift cards and prepaid american express cards, also some merchandise. The gift cards probably are valued under 600.00 and the are saying on the 1099 that the value of compensation for non-employment is 3000.00. Can i fight this and how?

Last year I babysat for the state of Nebraska. I have done this 2 years in a row. This year they sent me a 1099 misc form for my babysitting. I didn't get one the first year though. When I started to file my taxes they considered it to self employed which its not. But the weird thing is I already got my state taxes back from the Health and Human Services. So I need to include the 1099 form when doing my taxes or not??? I don't see why cuz I already got the money back from them 3 weeks ago. Any ideas???

To address Whitney's issue and many other similar issues with regards to an outside contract status. It is a conclusion you reach based on a set of control criteria, not a decision you make. If you were an administrator, he provided a telephone, working space, controlled where you worked, when you worked, how you worked, you provided no similar services to any one else, are not a professional, then you are an employee, regardless of what both of you decide. You can review an article in the Journal of Accountany web site on this subject. You can go to unemployment, and ask for benefits, and he will have to pay back unemployment taxes, as well as payroll taxes on you.

The I.R.S. will make the employer even pay in withholding that was not taken from your check.

I received a form that replaces the federal forms 1099-G and 1099-INT but I don't know why? I have an employer, and claim professional memberships and educational materials as work related expenses because they are necessary to work in my state and are not reimbursed by my employer. Is that why I received the form? There was an amount in the Income Tax Overpayment and/or Refund box but nothing in the Interest Paid on Tax Refund box-for 2007. what am I supposed to do with this?

Does a company ending in inc qualify for a 1099?

My daughter worked for cash for a very short time when she returned from college. Cash ended up to be a check, maybe 6 or 8 for less than $100 each. She was never told or asked about making out a 1099 and recently the employer called and asked her for her social security number so she could be sent a 1099. Question 1-- Is this standard practice?

Question 2-- Why would an employer wait 11 months to contact someone to request a social security #

Question 3 -- Does the employee have to be informed at the beginning of their employment they need to fill in a 1099?

I am the treasurer for a girls softball league and we hire umpires. Do they have to sign a W9 and if we should happen to pay more than 600.00 a year do we have to do a 1099. Thank you

I was hired for a company as an administrator and was told I would be put on payroll. Every month I was told the same thing by my boss he had to wait he could not afford it, but when tax came around he would help me. All other employees are 1099 Independent Sales Res who signed a W9 Form. I signed a W2 form.

Now, he laid me off saying he could not afford me anymore. So, now he will try and claim me as a 1099 can I fight that since I was not an Independent Contractor?

If I opened a bank account under an assumed name. Thinking I was going to start a business from a 401k that I cashed in (paid taxes to irs). I have only been able to loan the dollar amount and have not received any compensation. The full dollar ($5800.00) amount I loaned was paid and I reloaned it. Do i file a 1099 or is the bank going to file for me?

i worked as a secretary for an insurance agent for 6 years; for the 1st 2 years i was paid as a 1099 worker. i worked in the office for the agent using his resources, desk, phones, etc. it has come to my attention that it's illegal to work as a 1099 employee while using his office supplies & equipment. i'd like to know what recourse i have since i now owe the irs thousands of dollars. had i known this i would have insisted on being paid as a w-2 employee. should i contact my local wage & labor board? is there anything i can do at this late to repair any of this? thank you.

this question is in regards to paying seasonal help and having a 1099 sent to them at the end of the year making them responsible to pay taxes on the money they earn. Is there a maximum amount they are allowed to earn while getting paid this way?

I know of a self employed contractor who is working with only one main contractor. He does not receive a 1099 from the business he is contracting with. Is this the right way to do business and what are the penalties for not giving a 1099 and also on the receiving end of not filing with a 1099?

My employer has a huge 1099 penalty for incorrect TIN in Information Returns of 2006. Is it correct to levy penalty @50 per document and is there any way of saving this money? Please suggest.

hello, I have a question on 1099-INT and 1099-MISC. I have a LLC which invest money on a real estate company that gives me interest. my questions are:

1. my CPA said since they gave me 1099-INT, i can't write off any business expense. They have to issue me 1099-MISC for me to do so. is that true?

2. does this real estate investment company have the option to give either form?

thank you so much for helping me.

Cheryl, It's not legit to hire 50 people to work in the park and pretend they're independent contractors when they're obviously not and are just looking for jobs. Someone needs to hire these people (as employees) for them to do that kind of work -- if you can't, you'll probably need to work with a staffing agency?

The company I work for received a 1099-Misc. This a corporation and as far as I know it should not be receiving one. What should I do?

I have a company in Canada and was wondering if I can hire (on contract basis) a US resident/citizen within US on a 1099 basis.

I have just taken a job w/ a company where I need to fill out a 1099, my dilemma is that I have been collecting unemployment for the past six months and I qualified for the extended 13 wks. I don't start until Aug. 4th but in the meantime I will not be making any money for the next month or longer since my new job requires building clientele. Will I be unable to still claim for unemployment while being self-employed?

My husband just took a job as a painter in which he will be filing his tax returns as a 1090 employee. How much money should we be putting away every paycheck to cover the taxes we will owe? Also, we file jointly - I am a town employee. How will this affect us when we file our taxes, or should we start filing separately?Thanks, Jennie

Smallbusown - You answered your own question right. When you hire an independent contractor you are supposed to get them to fill out a W-9. You don't need to send that in to the IRS; you just need to keep it for your records. Then you are required to complete and send a 1099 to the independent contractor and the IRS, and possibly the state by the required date -- usually the end of January or February.

Answering my own question...

I did some research and I found one post suggested only the W-9 form is needed when hiring a 1099 status worker.

Hope that's really the case.

I'm going to start hiring 1099 status workers.

I have a contract they will sign with me, but I was wondering, before they work for me, do I need to have them fill out an I-9 form ?

Thanks in Advance.

Essentially all taxes in the United States today are the direct result and intent of the Communist Manifesto. The complex language of the IRS code is intentionally written to overwhelm, intimidate and coerce the individual to voluntarily give up a large percentage of their earnings. The IRS achieves its goal by distorting those laws which already preclude any obligation to pay tax on private sector earnings. What the ordinary citizen does not realize is that two languages exist which define wages, income, business, trade, employees, etc. Common interpretation of these words leads one to believe that Internal Revenue laws do indeed exist which compel citizens to forfeit a percentage of their private earnings.

The other language which forms the legal framework in the US is the US Code. To your utter amazement, here you'll discover how the IRS has manipulated the public by distorting language in the US Code - and through its network of dependent agent representatives such as tax courts, CPA's, IRS agents, etc., extorts billions each year from Americans.

Words such as - wages, income, business, trade and employee - do not apply to the ordinary working person; instead they are identified with the tax obligations of elected public officials and gains from bank holdings such as a savings account.

Unless you understand the difference in word usage and how it is legally applied to income tax, you will be forever robbed of your private sector earnings by a highly evolved group of communist thieves.

Thousands of well-informed Americans are learning the facts. I researched the tax fraud in the US for 10 years before I stumbled upon a liberating truth. I now only pay taxes for which the law of land says I am responsible - and not a penny more.

I suggest anyone wanting to break free forever from the IRS theft scheme to look more closely at a little known resource, Cracking The Code.

While the IRS would have you believe so, it is not the law. Every person has the right and the duty to refute and defend themselves against any charge or claim made by any agency or person - whether it concerns a traffic ticket, an erroneous credit card charge, defamation, taxes, or whatever.

I received a settlement agreement check from a past employer. The employer refuses to send me a 1099 form to file with my tax return. Isn't this form required by law and if it isn't what form is required?

I worked as an employee for a lady who originally payed me under the table with personal checks, then decided she wanted to be more legitimate and would start 1099ing me last year. but she never gave me any forms and never explained that i would have to file as self employed, so i didn't file at all (made less than $7,000). she now says that i owe thousands of dollars. is this true?

If I rent rooms out of the same house I occupy, am I obligated to put the rent they paid me on a 1099 form to be sent to the IRS?

I worked for CO 3 years ago but I never got a 1099. How many years do they have to send me one???

I got a 1099-a for abandonment of property. Amount owing 135,000 FMV 110,000. Do i have to pay taxes on the difference? Can anyone help ? What do I do with this form?

After the death of my Mother I took the cash payout option for my share of her IRA. The 1099 given to me by her financial institution is shows several thousand dollars less than what I received. They say the extra money came from her estate account and they deposited it to her IRA just before they sent me the check.

The extra money appears no where on my 1099 and the financial institution says they don't know how I'm to report this on my taxes. They're not going to send another 1099 for the money from the estate account. Do I need a 1099?

I was a nanny to a family in the past two years. I watched 5 kids in their house. The family did not withhold FICA, nor did they file quarterly for the unemployment insurance taxes during the time I was working for them. I did not receive a W-2 form or any tax form in the first year. Recently, I received a 1099 from this family. My understanding is that I should be considered as a household employee under the IRS laws, not an independent contractor.

What should I do? I understand that it is my responsibility to pay for my share of taxes; however, I should have been only responsible for 7.5% of FICA tax and my past employer would be responsible for the other 7.5%. Since they have never formerly filed the "nanny tax", they now (for some reasons) decided to send me this 1099 form. I am not quite sure how to report this on my upcoming tax return. I am not a contractor. How do I make this known

Please advise. Thank you very much.

I pay spousal support from my taxed pay, should I have my former spouse fill out a 1099?

We incorporated in July of 2007, but before that we had sub-contract labors. When do I have to have their 1099's sent out by?

I filed bankruptcy last year due to a divorce and not being able to pay for my home. I received a 10099-A form. Will I have to owe the government money or will I get any money back?

Employers who treat employees as independent contractors may give a 1099 or no tax statements.

The trouble is if you do any thing about it, it could mean your job. So, what to do? I suppose the only thing you can do is report that income on Schedule C and Schedule SE and take some business expenses?

Any other ideas?

Our non-profit organization is attempting to hire approximately 50 people for a 3 month job in a park. We cannot hire these people as employees, and receive funding. We must hire them as independent contractors utilizing 1099. Our accountant says that this cannot be done, first because each one has to be a business and each one has to have a tax-id number. can you help?

This past year I worked as an employee, as an independent contractor and had my own business in which I collected income. Do I have to fill out different forms for each? Will a 1040 long form cover it all?

I received tuition reimbursement from my job and was given the maximum $5250 per fiscal year that we are allowed. Do I have to file that on my income taxes?

My husband recently started working on an oil lease and they are saying he's an independent contractor but he gets paid by the hour, told what to do and has a boss, that watches over him and uses their equipment and tools. How do I dispute this when we file our taxes...I am so frustrated cause we are getting shafted and I don't know what to do.

I urge you all to take a look at IRS Form SS-8.

If you are tired of being scammed, and tired of seeing others ripped off, go ahead and fill out this form and mail it to the IRS - the more of us who blow the whistle, the less inclined employers will be to try to take advantage of us by misclassifying us as independent contractors.

If you are unable to get unemployment insurance, send this form to the IRS and also talk to your state's department of labor. Your company will end up being audited, and will have to back your witholding taxes for you, plus tons of back taxes. You can use this as a negotiation tool too in case they try to fire you. Just show them this form.

It's disgraceful just how many companies will deliberately misclassify employees and just how far they will go to save a buck. Thankfully, Americans have the resources we need to give them a good kick where it counts.

I've owned a corporation (.INC) since December '06, and have no employees. Can I file my taxes as a freelancer???

1.Types of 1099 forms?

2.What is the importance of it?

is it true that if you make less than a certain amount of money, you, as an employee does not need to report to the irs?

what is a "sub" is it the same as an independent contractor?

thanks

I have just learned that my new owner is planning on issuing 1099 forms to the current employees that have in the past been given W-2's. We are not independent contractors or freelance emmployees and strictly work for this one company. What is an employee's legal responsibility for paying into the IRS, Social Security, etc. if we receive a 1099? Is the employer responsible for the matching Social security, etc. that they pay when the employees receive W-2's or does that save the employer from paying anything and the emmployee is responsible for the full amount. Thanks.

I have a similar situatoin as Michelea16. I think the business is going down the drain and she is trying to save money by not having to pay workers comp, etc. She did not tell me she changed my status it was just on my check from the payroll company. What do I do now?

My employer, without any notification, has started paying me as a 1099 employee. This was done without my knowledge and when I confronted the employer he denied doing this even though I asked why taxes were not being deducted from my wages. My employer is lying to me telling me that he is paying the taxes and I will not be responsible at the years end but, my check information has been changed to 1099 status. What rights do I have? I have been employed by this company for four years. I am not now and have never been an independent contractor. I have never negotiated any contracts with this employer and as I have stated above this went into effect without my knowledge. After researching 1099 it is clear that my employer has taken advantage of me and has possibly interfered with my ability to take the proper steps to ensure that I have the necessary paperwork, (saved receipts, etc.) to use for legal deductions at the end of the year. Do I have any legal recourse?

Is a collector able to use a 1099/1090 form in order to garnish wages from a voluntary repossession of a vehicle?

i am doing a government job in India. I am doing online internet based jobs of USA . whether i have to pay income tax to USA government or not? have i to submit W-8BEN form to IRS ?

I am the Administrative Assistant to Professional Event Management, LLC Company. I do the payroll for all of our 1099 Contractors. We frequently get 'Employment verification' calls and I want to know what is legal to give out or not as far as their personal information is concerned.

I was an employee of a company and completed all work for them in 2006. But, instead of being paid in full last year, I am being paid in installments in 2007. I am no longer an employee of the company, nor do any kind of work for them. FICA and Federal income tax was being withheld for the first few months of 2007, but I have now been notified that beginning with the next installment I will be treated as an "independent contractor" and nothing will be withheld. I'm trying to figure out how to report the FICA taxes that were previously being withheld.

Do 1099 employees still qualify for unemployment benefits from their state should they lose their job?

Are there any restrictions on using your children as part time employees and using a 1099 as opposed to a W2? ie, using them as a freelancer as, opposed to an employee. They will be working in a parent-owned Sole Proprietorship during the summer and as needed during the school year.

My attorney was able to negotiate an out of court settlement with a former employer arising from the latter's breach of our employment contract. The attorney has received a 1099 from the miscreant employer and will forward it to yours truly. Yours truly will then write a check = 25% of the negotiated settlement to the attorney. Since the settlement was for lost wages, the understanding I have is that the fees payable to the attorney are tax deductible in the current year. The attorney has told yours truly that the attorney could be paid with a 1099 or words to that effect. Also that the letter of agreement signed with the att'y would suffice if this writer were audited by IRS over the future deduction of the att'ys fees. Any comments?

We have a 1099-A form due to forclosure on, what was, our home mortgage.

Do we need to input the balance, or any other data into the 1040, or is is just for information?

If the information does need to be entered, where?

Thanks...