How do I find out how much an employer reported as taxable income on my 1099-MISC ?

Question

I did a little tractor work for a friend of a friend..may be $1500 or so.
The guy said he wanted my SS# to report my pay, because we were working on a road to his winery he was just starting up.

So this year he says he isn't reporting the income so I won't get a 1099, I didn't really keep an accurate figure, because he told me he would 1099 me.

I want to report it, but don't want to over report, or over report. !!??

I don't really run a business, I was just helping the guy out, and actually saved him a bunch of money compared to what a "real" tractor company would have charged.

The post about him just hurting himself is exactly what I think.

I really don't know why he wouldn't report it, and I don't want to get burned DTR.

Answer 1

He's only hurting himself by not reporting it.

If he didn't send you a 1099 then he didn't send one to the government either.

You can just add whatever you think it is to your self employment income (be sure to subtract your estimate of expenses.)

That's great that you want to do the honorable thing even though you could get away scott free by not reporting it at all.



And you won't get him in trouble if you put it on. You just put a total down anyway. The IRS will think that you just had several jobs under $300 (where you don't get 1099'd.)

Answer 2

The amount that is sent to the IRS is the amount on your 1099. He isn't issuing a 1099 which means he isn't reporting the amount to the IRS. You have two choices.

Honest Choice-The money he paid you is income. Make your best estimate of the money he paid you (since you don't have exact numbers) and report that as Misc Income. If IRS notices you reporting money from him, they will go after him-not you, for his lack of reporting. I assume you have been withholding 10 to 15 percent from every payment he made to you so that you can pay your taxes on the income. Hopefully you also saved receipts so that you can offset some of the tax liability with business expenses.
Not As Honest Choice- The IRS does not know you made the money, nor will they since he did not file a 1099 for you. You don't worry about it and don't pay the taxes on the money he paid you. Go buy a round of drinks for your friends at your favorite bar.

Answer 3

Well, to start with, your friend is required to file Form 1099-MISC with the government. If he gets caught, he may end up spending quality time at his local federal pen.

That said, you should have some sort of paper trail regarding how much you received from him. Can you trace the deposits through your bank statement or something? That's what the IRS will try to do if you get audited. Also, remember to deduct your qualified expenses against your business income. That will reduce your total income tax and self-employment tax liability.

Just a note here: if you're operating a business, no matter how small, you should be keeping adequate documentation of all income and expenses. I strongly recommend that you get a separate business account to help you keep track of your business. And of course, don't pay for anything with cash-it's too hard to figure out what you spent when tax time rolls around.

Answer 4

He's required to file Forms 1099 for anyone he paid $600 or more for services rendered. If he doesn't and he gets audited, he'll lose the deductions for the monies paid to his contract labor providers.

Even if he doesn't provide a Form 1099 for you, you are still legally required to keep adequate records of all income received and business expenses. Best go back through your finances and figure out what was paid!

Answer 5

1099, means you report your own earning. He would send the info to the IRS minus how much you make!

Answer 6

I figure if they don't give you a 1099-MISC, you don't need to report it. Report them for tax evasion.

Answer 7

Look at old bank records if you were paid by check, or try to remember as closely as you can. Also, ask him if he has any records on what he paid you.

Answer 8

If he is not reporting it, and you report it, you will get him in trouble.