I am about to leave to attend my nephew's wedding, so I will not have ready access to the Internet.

I will try to log on when I can to answer your questions, but expect some delays until I return Sunday evening.

I received a 1099 for nonemployee compensation. But I have deductions for the full amount that is taxable ( I got $800, I can write off $900 ). Do I have to fill anything out or just keep records of my expenses?


Well I was receiving another source of income as an employee at the same time, so my expenses for my nonemployee and my employee were the same, and was basically getting paid twice for the same job. In an overview I sell cars, and the manufacturer gave me bonuses that were 1099 as nonemployee, but I was still paid from the dealership as well. So my mileage and other such deductions became greater than my income from the manufacturer, but I was still making income reported on my 1040. Any advice?

If you have not yet filed, just file a Schedule C with the Form 1040 and claim your expenses on that form to offset the orm 1099-MISC income.

AtlantaTaxExpert-- I am learning how to use this website so hopefully you will get this question. You seem to be a tax expert who can possibly answer my question:

My physician husband, who is a medical fellow in training, recently (Oct 2011) signed an employment contract to begin work at a hospital when his fellowship ends in 2013. He received a sign-on bonus this month for the gross amount of $10k. I assume we will eventually receive a 1099-misc for this amt. My questions are:
1. How do we calculate federal and state income tax amounts to pay;
2. Do we pay FICA on this bonus even though he is not a employee yet? (ie. Is this considered SE earnings?) He has performed no work for these wages, just signed a contract.
HELP!

Doctorwife:

A sign-on bonus is considered to be compensation which IS subject to FICA (Social Security and Medicare) taxes, so the hospitial SHOULD generate a Form W-2 to show payment of those taxes.

If they generate a Form 1099-MISC, then he should originate a Schedule C, which would allow him to claim his employee expenses on the Schedule C to mitigate the extra tax owed.

Email me at [email protected] and we can exchange phone numbers to discuss the issue in detail.