Maybe I worded the title incorrectly but here’s the story. DH was a consultant last year for a company that was sold to an overseas company. Money he received was deposited into our bank account. It included expenses as well as earned income and no taxes were taken out. We sent estimated taxes to IRS. We received 1099-misc and is is substantially (70%) lower than what he earned. We will make copies of all deposits showing what he actually made when we do our taxes but how does the IRS handle this? Many of the employees my husband worked with have left the company. He’s called, left messages and emails to try to straighten this out to no avail. Anyone have experience with this? Thank you
What a mess with unreported income
- Thread starter Carol1862
- Start date
target2019
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
On Schedule C, enter the 1099-MISC. Then add additional income to the line "not on 1099." Populate appropriate spaces on Schedule C with expenses, and you should be good to go.
Sunset
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
(IMHO)
You don't need to include the expenses, as this is reimbursement for traveling expenses.
You do need to claim as income the 1099-misc amount as earnings.
You can also claim other expenses since he was self employed, things like computer, parts, software, office space.
If You had traveling expenses not reimbursed, then you can claim those expenses as well.
You don't need to include the expenses, as this is reimbursement for traveling expenses.
You do need to claim as income the 1099-misc amount as earnings.
You can also claim other expenses since he was self employed, things like computer, parts, software, office space.
If You had traveling expenses not reimbursed, then you can claim those expenses as well.
gayl
Thinks s/he gets paid by the post
This ^
I did once work for a company that gave us w2s that were substantially less than what we made. I filed out a form, sent that with a copy of all wage stubs to both SSA & IRS. it mattered to me bc it was after I FIREd and I had made Roth deposits based on earnings. Wanted it to count
Yes, we are getting an accountant. DH was doing younger daughter’s taxes this morning but there is no way we can do ours. Admittedly, we are not familiar with all of the rules.
Thank you though for the responses. Glad we can use info we have and not rely on the company.
Thank you though for the responses. Glad we can use info we have and not rely on the company.
