I am trying to figure out my sisters taxes and her employer has her down as box 7 nonemployee compensation, and due to this it requires that she fill out a Schedule C, C-ez, or a Schedule F which all is about a business which she is not. First question is... is she able to even fill out these forms when she isn't a business?? Second question... Shouldn't these wages be under box 3 (Other income)... She is talking to the accountant for the business but has been getting the run around, so Question three... How do I file for her??? ANY HELP!
2007-04-15 15:07:39 · 3 answers · asked by Jay P 2 in Business & Finance ➔ Taxes ➔ United States
The company that hired her is treating her like a self employed contractor. It doesn't matter which box her earnings are in, when they are on a 1099 she is self employed. You will have to file a Schedule C and the schedule for self employment taxes, which is Social Security and Medicare, which she can deduct half of that on her 1040 first page. She also can deduct her expenses she incurred during that time of working, such as gas, oil changes, anything she purchased to do that job. It should have been clear when she began work that she would be self employed. When you are hired by a company, they have to have a W4 and an I9 in their employees file. Ask her if she filled out forms. If she just filled out a W9, she is stating that she is a contractor. I am a bookkeeper and do my son's taxes every year. He is self employed and I use Turbo Tax and it is so easy with that software, you will have to buy for home and business in order to have the right forms. It will walk you through everything. You don't have to know the IRS regulations or laws. It knows for you, you just enter numbers that it ask for. You will spend about 100.00 on the software.
2007-04-15 15:24:50 · answer #1 · answered by doris_38133 5 · 1⤊ 0⤋
internet site between the 1040, Line 21. or you need to document it on schedule C, in case you have costs regarding this pastime. they did no longer ought to deliver you a 1099-MISC. however if or no longer they deliver a 1099, you're nonetheless required to document the earnings. by the way by fact the quantity is larger than $4 hundred, you apart from mght get to pay FICA tax on it. You document this on schedule SE.
2016-12-29 14:58:25 · answer #2 · answered by ? 3 · 0⤊ 0⤋
If she got the money because she worked for it, then non-employee compensation is correct, it's not "other income. So yes, she'd have to file a C or C-EZ, schedule SE, and a 1040. If she has non-employee compensation, the IRS considers her to be in business for herself.
2007-04-15 15:40:16 · answer #3 · answered by Judy 7 · 0⤊ 0⤋