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March 15, 2020
Question

New owners took over the restaurant I work at, they started paying us with a personal check no taxes taken out. They haven't given 1099, how do I report?

  • March 15, 2020
  • 1 reply
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1 reply

ColeenD3
March 15, 2020

You would report it on Schedule C. You can enter the income even without the 1099.

 

However, you are probably an employee and you do have another option. 

 

File a Form 8919. The qualifications and instructions are available in the link below.

Workers who believe they have been improperly classified as independent contractors by an employer can use Form 8919, Uncollected Social Security and Medicare Tax on Wages to figure and report the employee’s share of uncollected Social Security and Medicare taxes due on their compensation. See the full article Misclassified Workers to File New Social Security Tax Form for more information.

 

Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed.

  1. Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
  2. Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
  3. Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

If you choose this route, your employers will probably not be happy, so that is a risk. Otherwise, follow these steps:

Report income without a 1099. Here's how to do that:

  • Click on Federal Taxes on the top row of TurboTax Deluxe Online.
  • Click Wages & Income
  • Under All Income, click Show all income
  • Scroll to Self-Employment, click Start
  • Click Yes to Did you have any self-employment income or expenses?
  • Enter any income from sales or services that weren't reported on Forms 1099-MISC