Taxpayer asks:
Hello, I have a question concerning a 1099 . I work for a company full time and get a w-2 at the end of the year. I have been asked to work additional hours and know that they usually do not like overtime. Can i ask them to 1099 me at the end of the year for the additional hours? Can I use my ss # or would i need to maybe go under a dba name and tax id #?
Thanks so much for your help!
Taxgirl says:
If you’re doing the same kind of work under the same terms, you need to be paid overtime using your regular tax ID so that you can be issued a W-2 for the entire amount. You’re still an employee for that additional work.
I know that employers don’t like to pay overtime. Of course not. They have to pay more for the same work. But tough! If they’re going to ask you to work it, they need to pay you for it. Not only is it the right thing to do, it’s the law. There are employment laws that your employer might be violating by structuring your compensation differently to avoid overtime.
Besides, you’re just shorting yourself by taking the 1099 in this case. As a W-2 employee, your employer withholds your taxes and pays half of FICA (Social Security and Medicare) tax out of their pocket. If you accept a 1099 for this extra work, not only will you lose the benefit of your overtime rate, you will be stuck paying 100% of the FICA tax as SE tax – you’ll essentially be taking an additional 7% hit.
It sounds like you’re trying to be accommodating and I appreciate that. But don’t talk yourself into getting a bad deal in your efforts to be a good team player.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
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Taxpayer asks:
I had been working for a company for a short time, it has now ended..
This is what happen…
I worked 18 hours at 11$ an hr, but was paid for 42 hrs.
They are requesting that I pay back 229.35
How do I go about with my tax information? Is there some sort of fourm that must be filled out?
Taxgirl says:
If this happened in 2008, I would refund the $229.35 and check your form W-2 to make sure that the correct amount was reported. If the form W-2 reflects the overpayment, I would insist on a corrected form W-2. If it doesn’t, you don’t have a problem. Clearly, you don’t want to overreport on your return once you’ve returned the money.
If this happened in 2009, consider sending a note with your check confirming the return of the funds as overpayment for wages and taxes.
Either way, be sure and clearly document on your check that this is a reimbursement (including taxes) for an overpayment and double check the form W-2. If you have concerns about the accuracy of your W-2 that you can’t resolve with the company, you should get your tax pro involved as soon as possible.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
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Taxpayer asks:
Hello Taxgirl,
I have a simple, yet complicated tax question. I worked for a company last year for the first 5 months, then for the last 7 months I was self- employed. Do I file two separate forms? Anything you can tell me I will greatly appreciate.
Thank you,
Taxgirl says:
Here’s a lawyerly answer for you: yes and no.
You’ll only need to file one tax return. In your case, you’ll likely need the long form, a plain vanilla 1040.
Report your wages paid by the employer just like normal, using your form W-2, on line 7 of your 1040.
When it comes to your self-employment wages, you’re likely going to want to file a Schedule C so that you can include your self-employment income and deduct the expenses associated with running your business. The Schedule C is basically just an addendum to your 1040 – not really a separate form in the pure sense, but an additional page (check it out here as a pdf).
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
Have a question? Ask the taxgirl! – Now on Facebook!
In a comment to my prior post about late forms 1099 and W-2, one of my readers (Thanks, Adam!) pointed out that brokers were sending notices about late forms as a result of a recent law. I posted about the new law in the comments but then thought it deserved its own headline – so here you go…
There is a law that allows brokers a few more days to issue forms 1099-B. The deadline is usually January 31 but has been extended to February 15. This is the deadline for mailing the forms, not receipt of the forms. But, since February 15 falls on a Friday, the deadline is even further extended to February 17 (the following Monday).
To be clear, the extended deadline only applies to forms 1099-B, which are forms by which brokers, including brokerage firms, mutual fund companies and barter exchanges, report investment activities.
This does not allow companies an extension to issue forms W-2, nor any other form 1099, including forms 1099-MISC. Those forms are still subject to the January 31 deadline. However, if certain information, such as interest usually reportable on a form 1099-INT is reported as part of a statement on a form 1099-B, the extension still applies.
You can read the official press release from the IRS on the IRS web site here.
