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deerco2 · Feb 25, 2011, 07:15 AM

I received a 1099-misc (nonemployee of $800) from the state of Illinois. I am a Vet and the state pays so much for animals that are neutered at the Vet clinic where I work. The Vet clinic says the money was included in my W2 they sent me and told me I need to transfer the 1099-misc to their account. How do I do that. What forms should I use.

ebaines · Feb 25, 2011, 07:22 AM

Please clarify: who actually paid whom?

A. Did the state of IL send you a check for $800 for your services?

B. Or did the state of IL send $800 to the clinic, who in turn paid you $800 (minus witholding for taxes etc).

deerco2 · Feb 25, 2011, 07:28 AM

The state paid the clinic who then paid me but the 1099-misc is in my name via DBA the clinic.

ebaines · Feb 25, 2011, 07:46 AM

If you've registered with IL as Doing Business As (DBA) the clinic name, then the 1099 is correct. By writing a check in the name of the clinic IL was actually paying you directly. Your clinic should have just handed you the check from the state, and not included it in your W2. My suggestion is talk to your clinic's accountant and see if they can have the $800 removed from your W2. They would need to reclassify the expense from wages paid to something else - maybe reimbursement. Also check on how it is that your name is registered with the state of IL as DBA the clinic - that seems to be the root cause of the problem.