View Full Version : 1099 Misc Box 7 but I am an employee
GIDocLA
Mar 29, 2008, 06:35 PM
Besides my usual W-2, I received a 1099 Misc from my employer with the income reported in Box 7 as non employee compensation. Clearly, I am an employee and don't have a business.
When I try to file, this becomes a very complicated issue.
Any similar experiences? Does anyone know how to file this?
Thanks,
AJR
N0help4u
Mar 29, 2008, 06:39 PM
You need to start by asking your boss why he is choosing to file you as 1099
It may be financial breaks on his part not claiming you as his employee and in the process you could be losing benefits such as workman's comp and unemployment.
GIDocLA
Mar 29, 2008, 06:46 PM
I received a bonus prior to starting my employment.
Thanks for your answer.
AJR
N0help4u
Mar 29, 2008, 06:52 PM
My boss had me on 1099's so she could get out of taxes and all that.
MukatA
Mar 29, 2008, 07:11 PM
GIDocLA:
Yes, you don't have any business. But if an employer makes a payment to an employee other than the wages, and the employer does not ask the employee to account for the expenses, then they issue 1099-Misc. Such income is reported on schedule C (Form 1040)-- Profit or Loss from Business (Sole Proprietorship. This is where IRS wants the employee to report such income. And, on this form the employee can directly dedcut his expenses to earn the 1099-Misc income.
For more on how you will treat the 1099-Misc income, read: Your U.S. Tax Return: W2 or 1099: Employee or Independent Contractor. (http://taxipay.blogspot.com/2008/03/w2-or-1099-employee-or-independent.html)