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Same people will complain about not being able to live on Social Security benefits. Oh, is that the Karma Bus coming down the You-Did-It-To-Yourself Road?

well you still have not told us what kind of work she did. Obviously it was more than once as it was over 2 year period, so it would appear that it is income subject to employment tax either as employee or self-employment.

And thermodynamics is always fun! PV=nRT forever!

BLACK BART Posted April 19 Put up a sign outside saying we're gone 'til sometime next month-same for voicemail. It's every taxpayer for himself. Beat/dead - it's gonna take some dayyys to lie prostrate & unstress, Can't remember when's the last time I got zonked-out, but thinking about popping the cork on that fifth of the grape somebody Xmased me last year (it's white and I like red, but what the hey-nothing else went my way this year). May 5th - The dayyys referred to above are, unfortunately, almost over (re-opening Wednesday). And about that wine; well, it HAD been a long time and hangovers are not one bit more fun now than they were in days of yore/youth (should have ODed on heavily-caffeinated Mt. Dew instead). Well anyway, two bits of good news: (1) granddaughter is graduating from college tomorrow after four years of bread (mine/her part-time jobs/AR scholarship), sweat (hers), and tears (ours). (2) grad school this fall but meantime she's getting a summer job (doubtless J.C.Penney's cosmetics counter needs a good dose of thermodynamics). Gosh, I didn't realize how much I missed this board 'til just now. It's nice to be back. Hope everyone's doing okay. Regards to all, BB.

Terry: You do have the correct plan to eliminate S/E tax by about $140, plus associated penalties/interest. Maybe a total of just under $200 total savings. The Form 8919 will probably work, and nothing will come of it due to the relatively small amounts involved. However, there's also the possibility that the IRS will contact the employer. Your niece worked there for two years, but can we assume that she isn't working there now and has no intention of doing so in the future? I ask that because if the IRS does follow up with an inquiry to the employer, that will probably end any future opportunities for her to work there in any capacity. I've had this sort of situation in the past, and when I posed that question to the taxpayer, they decided they didn't want to burn any bridges just to save a couple of hundred dollars. (minus my fee in those cases, but the decision was based mainly on the desire not to burn any bridges)

Ok busted, the amount on the 1099 for 2015 is $1208.00 and the amount for 2016 is $610.00. Also, I will disagree that amounts in box 7 of the form 1099 MISC automatically constitute SE income based on the two items below. The correct way to do this from the onset was for the preparer to include the amounts on line 7 form 1040 and complete form 8919 which connects with line 58 of form 1040 for amounts of unreported SS and Medicare tax. This still would return an amount due which would only be the 6..25 and 1.45 percent and not the total 15.4. So I still say amend the return to get the excess paid back. Also, the IRS penalized for failure to file and late payment. The company failed to provide the 1099 MISC in a timely manner. Ok, I know that doesn't relieve the client from the responsibility of the tax but hopefully we can get some of this abated. This is my niece and I had no intentions of charging her. I do agree that sometimes it is better to leave it alone if correcting things cost more. However, we still cannot forget the taxpayer has a responsibility to file an accurate tax return. Box 7. Shows nonemployee compensation. If you are in the trade or business of catching fish, box 7 may show cash you received for the sale of fish. If the amount in this box is SE income, report it on Schedule C or F (Form 1040), and complete Schedule SE (Form 1040). You received this form instead of Form W-2 because the payer did not consider you an employee and did not withhold income tax or social security and Medicare tax. If you believe you are an employee and cannot get the payer to correct this form, report the amount from box 7 on Form 1040, line 7 (or Form 1040NR, line 8). You must also complete Form 8919 and attach it to your return. If you are not an employee but the amount in this box is not SE income (for example, it is income from a sporadic activity or a hobby), report it on Form 1040, line 21 (or Form 1040NR, line 21). Question: I received a Form 1099-MISC instead of a Form W-2. I'm not self-employed and don't have a business. How do I report this income? Answer: If payment for services you provided is listed in box 7 of Form 1099-MISC, Miscellaneous Income, the payer is treating you as a self-employed worker, also referred to as an independent contractor. You don't necessarily have to have a business for payments for your services to be reported on Form 1099-MISC. You may simply perform services as a non-employee. The payer has determined that an employer-employee relationship doesn't exist in your case. If you weren't an employee of the payer, where you report the income depends on whether your activity is a trade or business. You're in a self-employed trade or business if your primary purpose is to make a profit and your activity is regular and continuous. If you're in a self-employed trade or business, you must include payments for your services on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship), or Schedule C-EZ (Form 1040), Net Profit From Business (Sole Proprietorship). If you're self-employed, you'll also need to complete Schedule SE (Form 1040), Self-Employment Tax, and pay self-employment tax on your net earnings from self-employment of $400 or more. There's no withholding of tax from self-employment income. As a self-employed individual, you may need to make estimated tax payments during the year to cover your tax liabilities. If you're not an employee of the payer, and you're not in a self-employed trade or business, you should report the income on line 21 of Form 1040, U.S. Individual Income Tax Return, and any expenses on Schedule A (Form 1040), Itemized Deductions

@RitaB and @rfassett -- OK you two... any minute now, you're going to start splitting infinitives in addition to ending sentences with prepositions. Then comes bad punctuation ("Let's eat Grandma!" -punctuation saves lives). Enough already!

You definitely will want to call the PPL and get copies of the Account Transcripts. Of course you will need form 2848, or 8821 and the number of transcripts are limited to 10 on any phone call. You can also get the transcripts on line once the 2848 has posted (about 5 days). PPL can provide the amount due for each year and the total amount due. If you need to know the expiration date for any year (CSED), PPL can provide that, too. BTW, if your 2848/8821 form is not on file when you call PPL, it can be faxed to them while they wait on the other end. I would then request that the form be forwarded to the CAF unit, so you don't have to fax it a second time.

To these type of clients, I ask them to drop off the documentation and to pay half of my fees, then I will call them if I have questions and I will call them when their taxes is ready to be reviewed and signed. When they ask me "how do I do this on TT?" I ask, "what is that?.... I use another software package so I have no idea about TT. You can call their support hot line and they will be able to help you".

Another scam going around is a call from someone claiming to be a Federal judge who is telling the recipient that they failed to show up for jury duty and a fine is being levied against them. The victim is told they have a short window of time to pay the fine or else they will be put in jail, the fine will double, etc. It's amazing that people would think a Federal judge is going to call them directly and that paying with a prepaid Visa is a normal practice for paying a fine.

You said the amount is very small. Is the potential savings of S/E tax, penalties, and interest on that amount worth what you will charge them for doing the work? If not, maybe leaving things as they are is the better choice, even more so if the daughter has any expectations of ever doing any more work for the company involved.

I disagree, there is no age limit for a self employed person. I agree that the preparer had no choice but to file subject to SE tax as 1099 was issued for earned income although as she did work/labor it should probably have been filed on 1040-Sch-C. If your niece wants to contest the status (for employee) I believe there is an IRS form 8919 and SS-8, for procedure of doing that with an amended tax return. Search IRS for "Misclassified Workers to File New Social Security Tax Form".

It's very simple. Focus on the law itself, and do your best not to make it about the people who are making the law. This has nothing to do with sensitivity, and everything to do with staying on topic. If you are unable to tell the difference between bean-counter law discussion, and snowflake libtards vs the evil cheese doodle president, for example, then I don't know what to tell you.