Advise me on the 1099-MISC that was given to my son

[Rightwinger]

I think he was an employee. He's 18, a college student but did some work for a "professional" business as a helper/assistant/apprentice in the field he's studying to be in upon graduation. He does not own or run a business to be self employed yet the tax program I'm running wants him to enter info into schedule C. It's not a bunch of money, under 2 grand for the year but I think they were incorrect in giving him a 1099 at the end of the year if they classify him as some type of contract or self employed worker. He should have filed quarterlys right?

Won't discuss the actual business but if someone with experience in this could assist it would be most appreciated.

[Steelharp]

Yes, he's to get a 1099 if he made more than $600 from any one employer. All I ever get are 1099's. If he got paid, he was employed. Don't let him get started paying quarterly's; once that starts, he can never stop. Been there, done that.

[Guest nosnos]

I work as an independent contractor regularly, though not as a "business", per se. Any business that pays me over $600 in a year is required to send me a 1099, and I have to pay taxes on it. Basically double what I would pay as an employee, since the "employer" is not paying taxes.

Sounds to me like he got the correct form, and he'll have to send it in on a schedule C. It sucks BIG TIME. I end up shelling out about $5000/year. If more people saw how much tax they were paying, they would be much more angry about it, as I am.

As an independent contractor you aren't required to file quarterly, but you have to pay a penalty if you don't. I think its like $60 or something. Worth it, if you ask me, to not have to do taxes 4 times a year. I freaking hate it.

1099 forms are going to be a LOT more common if they can't fix up the obamacare bill.

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[Guest nosnos]

Trust the music business fools to know about the annual a$$ raping of 1099's.

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[Ghooge2008]

My wife is a Care Giver, technically self employed, and gets a 1099...last year while her sister that choses to only work 12 hours a week to get tencare, food stamps, say her and her husband are seperated, say she is head of household "b"...got to blow 3300 bucks, while we had to pay almost 4200 in. FML.

[Guest 6.8 AR]

If that's the only income he received, unless something changed this year, I don't think he has to file.

[inspecting1]

Working on a 1099 also opens you up to a lot more deductions than a W-4 does. I work a few of these a year and my tax ladie actually told me that with the way I work, working one 1099 job a year for about 6 weeks is a good thing.

[mousegunner]

1099 = more work and higher costs for everyone. As a small landlord I have never before had to give 1099 forms to people who work for me, but now I do. The idea is to pressure the small contractor to pay more taxes, since now he knows that his income has been reported to Uncle Sam by whoever employed him. Our Fed gov is at work eliminating jobs and creating a bit more poverty for the little guy.

[bubbadavis]

Don't let him get started paying quarterly's; once that starts, he can never stop. Been there, done that.

In the past, I paid quarterly. At the time a significant portion of my income was as an independent contractor. If I didn't pay quarterly, the penalties would have kicked in. Now, I don't pay quarterly. I don't get enough income from independent work to matter. The government just wants to stop you from paying in all taxes at the end of the year - they like the interest free loans people give them (i.e. refunds due) but they want their money now.

Basically, whether or not you should pay quarterly depends on your employment status, etc.

[Guest Lester Weevils]

Unless the ObamaCare $600 1099 rule is repealed, I'm gonna bend over backwards to avoid spending more than $600 on any one vendor. Out of spite. This rule, if it stands, will really help the economy. Not.

I don't have a big gripe with 1099 for most previous purposes. Its the equivalent of a W2 for independent contractors. I have a gripe with income tax in general, but as long as we have income tax a certain amount of bureaucratic nightmare is unavoidable.

[Guest Hillbilly Dan]

I enjoy my membership at The Great Outdoor Range in Jackson,TN. The folks who run it are friendly and they know what they are doing.

You can rent a lane for an hour or get a membership. They hold classes for carry and first time shooters. They also are dealers for Sig, Kimber, S&W and several others. They also have many long guns as well as general outdoor merchandise. Its nice to shoot where it is warm when needed and cool when needed.

There are some limitations, but we have to learn to live with that.

We are also lucky enough to have a nice outdoor range in Jackson as well. Come on down and enjoy.

Hillbilly Dan

Life Member NRA

Friends of NRA

[KahrMan]

I enjoy my membership at The Great Outdoor Range in Jackson,TN. The folks who run it are friendly and they know what they are doing.

You can rent a lane for an hour or get a membership. They hold classes for carry and first time shooters. They also are dealers for Sig, Kimber, S&W and several others. They also have many long guns as well as general outdoor merchandise. Its nice to shoot where it is warm when needed and cool when needed.

There are some limitations, but we have to learn to live with that.

We are also lucky enough to have a nice outdoor range in Jackson as well. Come on down and enjoy.

Hillbilly Dan

Life Member NRA

Friends of NRA

I think you may have replied in the wrong thread....

[Steelharp]

It's a ruse to distract us. Hillbilly's really an IRS agent.

[Rightwinger]

I guess I'll have to go through the program a few more times. It wants to know what kind of business he runs, he doesn't. It's simply the company didn't want to claim him as an employee in my mind. He didn't set his own hours, doesn't have any type of inventory or tools, does not submit a bill, in fact he had to write his hours down when he came in and left, like a time clock. I think it's BS but we will work around them and get it done.

[Guest Lester Weevils]

If you can't think of anything else for the schedule C occupation code, try "consultant". There is a big list of business codes you can sort thru to try to figure out what little govt box you must fit in.

TurboTax and others remember the settings from year to year, and if you start each year from the last year's return it often saves a little time.

Just sayin-- If your son's income this year is somehow related to his school major and what he will be doing after he graduates-- It might make sense to think up some generic business classification and business name that would apply just as easily for future years, in case your son has future self-employed income in his field.

Depending on one's personality, it is pretty kewl to be self-employed. Your son may decide to go that route, and if so getting the biz name and category in the ballpark this year would mean he would need to make fewer changes in future years.

There are hassles about being self-employed, but I haven't received a W-2 since 1976 and it doesn't hurt my feelings. Often the problem is figuring out a business description. If I could have made a biz description years ago, "I do anything that will make a buck" then it would have made accounting and sched C easier. All the money goes into the same kitty, so sometimes it is difficult to assign income and expenses across multiple Sched C forms.

[Rightwinger]

I found the code for the business he works for. I guess "all around helper" isn't big on the governments list of qualified professions.

Thanks everyone for weighing in. Tax Act is steering me the same way you all are, it just feels wrong to have to "work around" the system.

[hardknox00001]

Maybe I missed it but did they hold any taxes out on him, ie paycheck deductions? If so, a 1099 is the wrong form. If they didn't hold any taxes out, a 1099 is the right form.

[Rightwinger]

No withholding of any kind. Just a 1099-Misc with only his pay in box 7, Nonemployee compensation.

[Guest JRS]

My wife is a Care Giver, technically self employed, and gets a 1099...last year while her sister that choses to only work 12 hours a week to get tencare, food stamps, say her and her husband are seperated, say she is head of household "b"...got to blow 3300 bucks, while we had to pay almost 4200 in. FML.

I really, really feel your pain on this dude. I'm a self-employed DryWall contractor & I've always gotten the 1099's & my wife gets a W2 from her job. What she pay's in helps offset my expenses a lil each year because every lil bit helps. Now on the other side of life where reality does not exist my cousin & his drug addict ex-wife get well over 4k EVERY year on taxes & only he works & pays child support(125week 3kids). Now this loser skank simply sits around & literally spends the child support money on drugs & liquor & it's a party all day everyday. While the food stamp office & welfare foot the rest of her bills & the kids suffer from the disfunction of a broken home. I really wished there was something I personally could do to better like this but the system allows & encourages it.