Taxpayers income reported on a 1099Misc., under nonemployee comp

[mblatour]

I have a client who worked for an Insurance company that didn't withhold anything from her checks; they sent her form by 1099Misc. The only info on the form is $2051 in box 7, nonemployee compensation. When I try to enter this under my Misc. Income Worksheet, it wants me to link the income to a Schedule C, F, or form 4137.

How do I deal with this? There is no business to link this to. The way I see it, she was just an employee that they paid regular straight checks to.

Maybe I am missing the obvious here, who knows?

[ChEAr$]

employee or.....?

Was she a common law employee who worked at the employer's office during their
set hours?

you need to first determine her classification.

[mblatour]

I'm not sure

I have a phone call message into client to see what her classification was.

[Kram BergGold]

See TTB page 5-22 and 5-23

Read Section 3509 relief

[mblatour]

Thanks Guys

I read through TTB section on this and then also went over it with my client. She feels the way they paid her wasn't done correctly. She doesn't consider herself an independent contractor, but rather then make a stink about it, she is going to have me file a Schedule C-EZ and pay the SE tax. She had previously called the MN Dept. of Revenue and they told her that if she feels she's being treated improperly, she can turn the company in. She doesn't want the hassle.

She's been looking for another job anyway, and will hopefully be working for a company soon.

[jainen]

that way

>>the way they paid her wasn't done correctly<<

If she was an employee, she can report the mischaracterized wages on form 4137. She will still have to pay 1/2 the Social Security taxes that way.

[JoshinNC]

And file SS-8

>>the way they paid her wasn't done correctly<<

If she was an employee, she can report the mischaracterized wages on form 4137. She will still have to pay 1/2 the Social Security taxes that way.

so that the service can determine whether they believe her to be an IC or an employee