Free Tax Help for Scubaboarder Members!!!!

[dumpsterDiver]

Wife works part time as a private contractor. Run the business as a sole proprietor. Been doing taxes like that for a while. Generally she works for 2-3 private entities, some of them non-profit.

This year, she worked for only one, made a few thousand dollars and they are refusing to issue a 1099, claim they are not reporting it, but we can if we want.

I do not want to break any rules, but their failure to issue a 1099 makes me very uncomfortable. Shall I submitt one saying that one was not issued, or shall I just show the income as miscellaneous and not fill out a 1099 myself. I'm not even sure i have their tax ID number..maybe have it fom last year?

I assume because they are non profit, they don't feel the need to issue a 1099 (plus it is less than $3,000).

Even though I could probably not claim any of the income, that is NOT an option. I'm not interested in doing anything aggressive let alone illegal.

What the best way to claim the income and generate the fewest raised eyebrows at the IRS? I do my taxes myself on turbo tax for maybe 12 years with a home office deduction etc. without any problems.

Thanks!

 

[Dive-aholic]

Taxcut (now H&R) asks if you were sent a 1099 and allows you to enter income without it. Not sure why they're not issuing one, but I don't have employees and am not familiar with the regs concerning that.

 

[denisegg]

More questions.

A business that is owned by a couple and that couple has to file separately. Is it allowable to split the business revenues and costs between the 2 filings?

It appears that the schedule 179 items can be split in any percentage among the 2. Is this true?

Does there have to be any kind of justification for splitting things between the 2 filings or can it just be done in the most advantageous way for the filer?

Theoretically, if two people are involved in a business, even if you are spouses, you are suppose to file a partnership return for the business and then split the income and expenses based on the percentage that each owns. The partnership does not pay taxes, it is a pass through company and each owner receives a k1 which summarizes their share of the earnings, etc to use when filling out their return.
I have seen the IRS allow people to just take their share (based on their % of ownership) and use this, but there are no guarantees that they would.

 

[denisegg]

Wife works part time as a private contractor. Run the business as a sole proprietor. Been doing taxes like that for a while. Generally she works for 2-3 private entities, some of them non-profit.

This year, she worked for only one, made a few thousand dollars and they are refusing to issue a 1099, claim they are not reporting it, but we can if we want.

I do not want to break any rules, but their failure to issue a 1099 makes me very uncomfortable. Shall I submitt one saying that one was not issued, or shall I just show the income as miscellaneous and not fill out a 1099 myself. I'm not even sure i have their tax ID number..maybe have it fom last year?

I assume because they are non profit, they don't feel the need to issue a 1099 (plus it is less than $3,000).

Even though I could probably not claim any of the income, that is NOT an option. I'm not interested in doing anything aggressive let alone illegal.

What the best way to claim the income and generate the fewest raised eyebrows at the IRS? I do my taxes myself on turbo tax for maybe 12 years with a home office deduction etc. without any problems.

Thanks!

The income is taxable and must be shown on your tax return. The employer is responsible for issuing a 1099, not you. If they are audited, they will be charged a penalty for not filing the 1099, not you. Alot of people receive income that is not reported on a 1099 for different reasons, but that does not allow you not to report it.
As far as your tax package, go straight to the Sch C and show the income on the line that says Gross receipts or Sales not reported on a 1099.

 

[dumpsterDiver]

The income is taxable and must be shown on your tax return. The employer is responsible for issuing a 1099, not you. If they are audited, they will be charged a penalty for not filing the 1099, not you. Alot of people receive income that is not reported on a 1099 for different reasons, but that does not allow you not to report it.
As far as your tax package, go straight to the Sch C and show the income on the line that says Gross receipts or Sales not reported on a 1099.

Thanks, that really helps me.

 

[Dive-aholic]

Thanks, Denise. 2 more weeks and you get to go diving again!!

 

[denisegg]

Thanks, Denise. 2 more weeks and you get to go diving again!!

Hallelujah!!!

 

[ColinCB]

Denise, I'm a dependent under my parents. I sold a couple hundred dollars of photography prints, how do I report this income?

 

[Dive-aholic]

Minimum income requirement for a single person is $9350, so a couple hundred dollars isn't necessary to report.

 

[Jax]

Denise, since the Federal Government is going to shut down next week, and therefore by their own fault are not there to receive my taxes, that means we don't have to pay, right? :blinking: J/K

10 more days until freedom for you! k: