I know..yuck, a tax ? Help greatly needed!

[hmwnick]

1st of all, unfortunately I do our taxes....
Last year my DH worked for a company & received a 1099MISC, during that time he had a person assist him (not exactly an employee) 1/2 of the $$ reported on the 1099 was paid to this person. This situation leaves us oweing ALOT. We have never had anyone work for us & do not know how to handle this. Is there anything we can do? Any suggestions would be greatly appreciated!!!

Hope this isn't as clear as mud!

 

[mickeyboat]

1st of all, unfortunately I do our taxes....
Last year my DH worked for a company & received a 1099MISC, during that time he had a person assist him (not exactly an employee) 1/2 of the $$ reported on the 1099 was paid to this person. This situation leaves us oweing ALOT. We have never had anyone work for us & do not know how to handle this. Is there anything we can do? Any suggestions would be greatly appreciated!!!

Hope this isn't as clear as mud!

Were the checks written to your DH who in turn paid this other person, or were the checks written to each person separately. If they were written to your DH, you should have provided the other person with a 1099, and then you could have deducted the amounts paid to that person, leaving him responsible only for his portion.

If the company paid each person in separate checks, then the 1099 needs to be amended to reflect that. If your DH paid this person under the table, then I am afraid you are stuck.

Good luck!

Denae

 

[bicker]

If you didn't get a SS# then you're probably out of luck. (If you did get a SS#, you can file a 1099MISC showing that you paid that money to that person.)

 

[hmwnick]

The company paid DH & thn he paid the 2nd party (on the up & up) & yes we have his S.S.#. How do we go about getting a 1099 or is it too late? Sorry for all the ???s.

 

[eyeoreismyhero]

You can get 1099 kits at Staples, Office Depot, Office Max that have 1099 forms as well as you 1096 transmital. They are on CD and all you do is type in the info and print them out. You could probably call a local accountant and buy single forms but hand write the info in.

Also no offense but if you've never done a schedule C before I would either invest in turbo tax or get an accountant to prepare the form. The tax savings will be worth it.

 

[hmwnick]

no offense taken...I am using TurboTax. Would this 2nd party be considered a contract employee or what &do we need a EIN #...

BTW thanks SO much!

 

[mom2boys]

You can get an EIN# online from the irs web site. www.irs.gov Do a search for Form SS-4.
The 1099 should have been issued to the worker by Jan 31. Your transmittal (Form 1096) is due to IRS today.

 

[eyeoreismyhero]

no offense taken...I am using TurboTax. Would this 2nd party be considered a contract employee or what &do we need a EIN #...

BTW thanks SO much!

You can use your husbands SS# as your taxpayer ID# and the person you paids SS# as their ID number. You would put the amount you paid them in box 7 (Non-Employee Compensation).

This site might help more http://www.ehow.com/how_9185_prepare-1099-contract.html

 

[OhMari]

I am going to ask a question.

Did your husband verbally agree to pay this person in cash?

My husband does work for his uncle's company and we asked him numerous times to let us fill out a W-4. We received another 1099Misc. It really does stink, but luckily we pay enough in, that the amount of taxes on it is covered by our refund. Plus we do a schedule C, so we even pay Social Security and Medicare taxes.

 

[hmwnick]

You can get an EIN# online from the irs web site. www.irs.gov Do a search for Form SS-4.
The 1099 should have been issued to the worker by Jan 31. Your transmittal (Form 1096) is due to IRS today.

Form 1096??? Will there be a penalty since it is due today?

 

[bicker]

I would recommend you be sure to let the other person know you're issuing a 1099... some folks get bent out of shape if you do so without them realizing you're going to do so.

 

[hmwnick]

yes they know! Thanks!