1099 Husband and/or wife

[JenMO]

1099 was issued in husband's number instead of wife's. Do I have to send a 1099 from husband to wife, or because it is a joint return all the numbers will show up anyway and it will match ok? What is the best way to handle?

[Jiggers]

What kind of 1099?

1099 was issued in husband's number instead of wife's. Do I have to send a 1099 from husband to wife, or because it is a joint return all the numbers will show up anyway and it will match ok? What is the best way to handle?

Is this a 1099INT, 1099DIV, 1099B?

Or a 1099MISC for non-employee compensation?

[JenMO]

Sorry, 1099 misc. Husband and wife work job, but it's wife's business and wife wants to report under her number. 1099 came in husband's number

[solomon]

Sorry, 1099 misc. Husband and wife work job, but it's wife's business and wife wants to report under her number. 1099 came in husband's number

What do you mean by husband and wife work job - is the "job" the wife's business?

[Jiggers]

Have payer reissue the 1099MISC

Sorry, 1099 misc. Husband and wife work job, but it's wife's business and wife wants to report under her number. 1099 came in husband's number

If the 1099 was issued incorrectly, have the issuer correct the mistake.

How did they get the husband's number anyway?

[BHoffman]

Hi Jen - you could also put the income on a schedule C under Hubby's SSN with a corresponding expense under "other" called "Nominee to (wife's SSN)"

Then, report the income under wife's Sch C and SSN. Do you think that might work?

The only problem might be that Hubby needs SE income for Soc Sec purposes.

[FEDUKE404]

Observation

I think that troublesome form known as Schedule SE might come into play.

While it is possible to "fix" the his/hers thing with a Sch C for hubby sending "his" income to his wife with a second Sch C, that could get quite messy.

And don't forget there may be some issues here where a spouse may or may not want any gross income to show up. ("I'm on disability..wink..so I let my wife claim the income...wink")

The "it's wife's business" also raises some concern. She may even be wanting to get some extra income attributed for future Soc Sec issues?

Be careful...be very careful.

FE

[Jesse]

If the 1099 was issued incorrectly, have the issuer correct the mistake.

How did they get the husband's number anyway?

This would be the correct way to handle it, but I would make sure to talk to the person in charge and ask to see the corrections and verify they will be notifying the IRS. I say this because it happened to me!

My husband, a contractor, was to receive a 1099MISC from a local bank, in error it came in my name and social security number in the amount of $225,000+++. I took it to the bank and asked for the correction to be made, and so for me they did. The only problem was they never sent the corrected copy to the IRS or State!

A couple years later I receive a notice from the IRS assessing a huge tax for under reported income! I brought it to the bank and they were kind enough to write a letter saying the screwed up! Wasted too much of my time.

[Jiggers]

Banks!

This would be the correct way to handle it, but I would make sure to talk to the person in charge and ask to see the corrections and verify they will be notifying the IRS. I say this because it happened to me!

My husband, a contractor, was to receive a 1099MISC from a local bank, in error it came in my name and social security number in the amount of $225,000+++. I took it to the bank and asked for the correction to be made, and so for me they did. The only problem was they never sent the corrected copy to the IRS or State!

A couple years later I receive a notice from the IRS assessing a huge tax for under reported income! I brought it to the bank and they were kind enough to write a letter saying the screwed up! Wasted too much of my time.

Years ago, before 1099's were e-filed by banks, a client received a 1099 with the decimal in the wrong place. $10,000.00 instead of $100.00. Client took the 1099 to the bank and the bank corrected it with White-out! On their copy only. I told the client that the bank needed to send a corrected copy to the IRS. They didn't and the CP2000 followed. Then, and only then, did the IRS send a corrected copy to the IRS. And paid my fee for correcting this mistake which could have been avoided if done correctly in the first place.

[Burke]

And don't forget there may be some issues here where a spouse may or may not want any gross income to show up. ("I'm on disability..wink..so I let my wife claim the income...wink")
The "it's wife's business" also raises some concern. She may even be wanting to get some extra income attributed for future Soc Sec issues?Be careful...be very careful.
FE

I have seen this more than once. And not only between H&W on joint returns. I had to remind a client that attempts to shift income to another person (for whatever reason) which that person did not legitimately earn was illegal. He was in the midst of an OIC and did not want the income on his return. Same situation came up in a divorce. Most of the time it is the SS benefit they are trying to manipulate.

[JenMO]

Husband helps wife with business, similar to a farm where both husband and wife work but usually only one reports income. Wife used to go out by herself on route, then husband retired and is traveling with her. I'm not sure how the numbers got reported wrong. Would it be better if husband sent a 1099 to wife? and then put on Sch Cez, and then she reports on her own Sch C?

[Burke]

That will work. I have done same on a Sche C small business (wife's) who paid her husband (1099MISC reported) to do installations. She deducted as expense, he did his own Sche C-EZ and paid SE tax on that amt.