In this Dr. Friday Tax Tips – One Minute Moment Podcast, Dr. Friday, an expert in tax and financial matters, addresses a common confusion faced by many taxpayers. A listener questions receiving a 1099 form instead of a W-2, despite not being self-employed. Dr. Friday explains the significant differences between the two forms, highlighting how misclassification can occur and its implications. She emphasizes the characteristics of a 1099, typically issued to self-employed individuals or consultants, in contrast to a W-2 form meant for regular employees with deducted taxes. For those facing this predicament, Dr. Friday advises on possible steps, including reaching out to the Department of Labor, to rectify this misclassification. Visit www.drfriday.com for more information and tune into the Dr. Friday call-in show live every Saturday from 2 to 3 p.m. on 99.7 WTN.
Transcript
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial firm. To get more info go to www.drfriday.com. This is a one-minute moment.
I have a person that says, I received a 1099 instead of a W-2, but I’m not self-employed. How do I report this on my tax return? Well, sounds like misclassification if you’re not self-employed. A 1099 would be for individuals that are operating their own business or being paid in that situation. So if you’re consulting or something like that, you are considered self-employed. An employee is someone that receives a W-2 where deductions have come out of your check. So if you’re working for someone that is not treating you as a W-2, that is misclassification and you might want to contact the Department of Labor. If not, you can go to drfriday.com.
You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.