Comments on: Ask the taxgirl: Independent Contractor and Employee in the Same Tax Year

By: Karen

Karen — Fri, 04 Dec 2009 02:57:06 +0000

My husband had 3 shares in a company that he worked for. He received a K-1 also for the company. He has a note signed by an officer in the company that states that he was an employee. He was given medical insurance and the also reimbursed him for exprenses. They did not give him a w-2 but gave him a 1099, Who is responsible for the taxes?

By: Candace

Candace — Fri, 06 Nov 2009 19:19:48 +0000

My lil brother is new to being an indepedent contractor (roof inspector) and hasn’t filed anything for 2009. He has been both a W2 and 1099 for 2009. Is he required to file by the annual tax deadline of Apr 15 or should he have made quarterly estimated tax payments and is now due Jan 15?
Also, which forms are required? I know the 1040 is, but not sure what else he is to use. Sched C, ES, SE? Thanks for any info you can provide!

By: Don

Don — Wed, 22 Jul 2009 14:44:02 +0000

Hi, as an independent contractor/facilitator for loan processing ,when receivng my finder fee for a contract or assignment deal, when the payer begin to have the funds wired into the payee bank account, the payee bank information such as, aba routing number,, account number, tax id #, etc, is the tax id #, required at the time of the wired funding to the payee bank account to received the funds, or can it be left blank?

By: Kelly

Kelly — Fri, 15 May 2009 10:00:23 +0000

Pub 15 is a good start: http://www.irs.gov/pub/irs-pdf/p15a.pdf. You can also seeRev. Rule 87-41, 1987. My info is based on the definitions of both according to the Tax Code and case law (as well as experience). If you're interested in case law about the differences bt the two, read the Microsoft cases on this subject, esp Microsoft III.

By: Adam

Adam — Thu, 14 May 2009 22:23:37 +0000

Just out of curiosity, here would I find the information to support your findings that you can be both an independent contractor and an employee for the same company? Is there a specific code section? Or publication?

By: Brian Wainwright

Brian Wainwright — Thu, 05 Mar 2009 07:11:25 +0000

Don’t forget Schedule SE for the self-employment tax on “net earnings from self employment.”

By: Kelly

Kelly — Wed, 04 Mar 2009 18:50:42 +0000

Yes, you can be classified as an independent contractor and as an employee by the same company in the same tax year. It is unusual but not impossible – as a result, it can be tricky to report.

The key is to make sure that the independent contractor duties are both clearly separate from the requirements of the salaried employee position AND still meet the regular criteria for being an independent contractor. The last part is very important: even if the job descriptions are different enough to justify another pay rate or job title, that doesn’t translate into independent contractor status.

By: Kelvin Kao

Kelvin Kao — Wed, 04 Mar 2009 18:35:03 +0000

In 2008, I was consulting for a company for the first 4 months and employeed by the same company for the last 8. The company gave me two forms (W-2 and 1099) but I only have to file one (1040).

By: Az

Az — Wed, 04 Mar 2009 17:27:47 +0000

I’ve got an interesting situation, can someone receive a 1099 and W-2 from the same company if they have two distinctly different positions within the company? One where they are required to clock hours and report to the owner (front desk duties), and the other where they have the freedom to schedule appointments with clients and provide services (personal training in this case) directly to the clients without direction from management or an owner. All the client fees are collected by the gym, and are then paid to the trainer net of thier rent expense. Those payments are recorded as 1099 income and the front desk hours are reported as W-2 income. What do you think?