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Thread: 1099-MISC Income Tax Question

  1. #1

    1099-MISC Income Tax Question

    So I've received my first 1099-MISC from the MRA, and I'm wondering if anybody can guide me in how to report it?

    I thought it would fit in Line 21, "Other Income", but the instructions for that clearly state:
    ... do not report on line 21 any nonemployee compensation shown on Form 1099-MISC. Instead, see the chart on page 11 to find out where to report that income.
    Ok, no problem. Let's go see this chart on page 11...
    1099-MISC
    ...
    Nonemployee compensation (box 7):
    Schedule C, C-EZ, or F. But if you were not self-employed, see the instructions on Form 1099-MISC.
    Umm, ok. I'm starting to feel like I'm getting the run-around here. Let's see... Form 1099-MISC... Instructions:
    Box 7. Shows nonemployee compensation. If you are in the trade or business
    of catching fish, box 7 may show cash you received for the sale of fish. If
    payments in this box are SE income, report this amount on Schedule C, C-EZ,
    or F (Form 1040), and complete Schedule SE (Form 1040). You received this
    form instead of Form W-2 because the payer did not consider you an
    employee and did not withhold income tax or social security and Medicare tax.
    Contact the payer if you believe this form is incorrect or has been issued in
    error. If you believe you are an employee and cannot get this form corrected,
    report the amount from box 7 on Form 1040, line 7 (or Form 1040NR, line 8 ).
    You must also complete and attach to your return Form 8919, Uncollected
    Social Security and Medicare Tax on Wages.
    Ok, it tells me what to do if I believe this form has been issued in error, but not what to do if the form was issued correctly. I was thinking I could just enter the amount on line 7, but then I have to fill out a Form 8919. A quick check of Form 8919 uncovers that there is a mandatory reason code field, and at least one of the following reason codes must be entered:
    Reason codes: For each firm listed below, enter the applicable reason code(s) for filing this form in column (c). If none of the
    reason codes apply to you, but you believe you should have been treated as an employee, enter reason
    code G, and file Form SS-8 on or before the date you file your tax return.
    • A I filed Form SS-8 and received a determination letter stating that I am an employee of this firm.

      B I was designated as a "section 530 employee" by my employer or by the IRS prior to January 1, 1997.

      C I received other correspondence from the IRS that states I am an employee.

      D I was previously treated as an employee by this firm and am performing services in a substantially similar
      capacity and under substantially similar direction and control. (You must also enter reason code G.)

      E My co-workers, performing substantially similar services under substantially similar direction and control, are
      treated as employees. (You must also enter reason code G.)

      F My co-workers, performing substantially similar services under substantially similar direction and control, filed
      Form SS-8 for this firm and received a determination that they were employees. (You must also enter reason
      code G.)

      G I filed Form SS-8 with the IRS and have not received a reply.
    Unfortunately, none of them apply, so what do I do?

    Any help would be greatly appreciated.

    Thanks in advance.
    Bob - #46
    MRA President (2024) - Vice President (2022-2023)
    "Racing makes heroin addiction seem like a vague wish for something salty." - Peter Egan
    Colorado Sportbike Club | 4 Horsemen Racing | R.I.P. 502
    Everything works out in the end. If it hasn't worked out, it isn't the end!

  2. #2
    Bob - #46
    MRA President (2024) - Vice President (2022-2023)
    "Racing makes heroin addiction seem like a vague wish for something salty." - Peter Egan
    Colorado Sportbike Club | 4 Horsemen Racing | R.I.P. 502
    Everything works out in the end. If it hasn't worked out, it isn't the end!

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