1099-misc Box 7 no Sch C or F TP also employee of same Co.

[AZ-Tax]

Only box 7 (nonemployee comp) but the TP is salaried employee with this same Payer (same EIN #) so it asking me within the 1099-misc wkst to select a code for form 8919. How important is this or can I just enter the amt on Line 21 form 1040 and enter "other income" and skip the 1099-misc wksht?

[Gretel]

I believe the worksheet is supposed to make our life easier. If it doesn't fulfill this purpose just skip it. It's software related not IRS related.

[Burke]

Only box 7 (nonemployee comp) but the TP is salaried employee with this same Payer (same EIN #) so it asking me within the 1099-misc wkst to select a code for form 8919. How important is this or can I just enter the amt on Line 21 form 1040 and enter "other income" and skip the 1099-misc wksht?

If he is an employee with W-2, then they should not be giving him a 1099MISC. What was it for?

[AZ-Tax]

Why the TP employer issued TP both W-2 & 1099-misc?

TP told me some kind of mix up. Didnt really go into details.

[David1980]

Without the details how will you know where to report it?

[tpnl]

I had this before . .

and filled out the form for the additional taxes. The IRS refunded the amount to the client and said tax return was prepared incorrectly. (The w-2 and 1099 were same employer and same EIN. The 1099 was given for a bonus)

I told the client the IRS was incorrect. Client wanted to drop the issue. I told client in the future if the IRS realizes their error and requests the tax to be paid, it is not on me.

[taxea]

I would want to have a full understanding of what this "mixup" is and then have the client get the mix up corrected before the taxes are filed, if that is necessary. He is an employee who, if, receiving a 1099misc must have done other work during his off hours that was not in the perview of his employment and the 1099misc income may have to go on a Sch C.

[Burke]

And I have seen them prepared (incorrectly) for car allowances or mileage expense. So it may be applicable elsewhere as well. On 2106 for example. You need to really know what it is. If it is a bonus, it could go on Line 21, but it still would be subject to SE tax, so you need to complete that.

[Jesse]

Or

Could it be a spiff, line 21, not subject to SE?

[Burke]

Maybe. Then it should have been in Box 3, Other Income. You just never know until you dig into it.

[gkaiseril]

Could it be a spiff, line 21, not subject to SE?

SPIFF Sales Promotion Incentive Fund (more commonly written as SPIF)

Usu sally a payment through the employer from a supplier (not the employer) to encourage sales people to push that companies product.