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Thread: Get Your Taxes Won

  1. #41
    Quote Originally Posted by Sabo View Post
    Sure, but you'd still want to file to rebut erroneous presumptions from other entities, no? Sadly, it's difficult to find a payer that doesn't blindly follow the status quo. Not sure how you folks are able to get out in front of that.
    You speak of the reporting by employers (including clients)?

  2. #42
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    Quote Originally Posted by Sabo View Post
    Sure, but you'd still want to file to rebut erroneous presumptions from other entities, no?
    Yes, that's another reason to file. Up to you. Let's say you made $100k last year, off the books as they say, with no reporting except for a single 1099-MISC alleging $7k in Box 7 "Nonemployee compensation." The rules say you're required to file as the $12,000 (Single) filing threshold does not apply to self employment income. You would not owe any income tax, because your income is below $12,000. But you'd be on the hook for social security and medicare ("FICA") tax due on your "self-employment" earnings. The self employed pay FICA as "Self Employment Tax" (SET). SET is calculated on schedule (form) SE and is filed as part of an income return.

    But what if you're redeeming lawful money and don't agree that $7k was "self-employment" or "Nonemployee compensation"? Filing a return is your chance to rebut that allegation.

    Disclaimer: not tax advice

  3. #43
    Quote Originally Posted by David Merrill View Post
    You speak of the reporting by employers (including clients)?
    Yes. The vast majority of non-privileged entities blindly outsource payments through companies that make those presumptions - whether based on Agency fear, and/or because they directly benefit from the confusion.

    Quote Originally Posted by lorne View Post
    a single 1099-MISC alleging $7k in Box 7 "Nonemployee compensation." ... But what if you're redeeming lawful money and don't agree that $7k was "self-employment" or "Nonemployee compensation"? Filing a return is your chance to rebut that allegation.
    Funnily enough, this is very close to my situation. But I have had trouble in the past with Correcting 1099s (via LH/CtC, which has its merits, but certainly its flaws). Would you be kind enough to go into more detail of the structure of your rebuttal? Are you also sending a Corrected 1099, referring to LM, or are you adding it to your 1040 and calculating an LM Deduction?
    Last edited by Sabo; Today at 04:20 AM.

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