Saturday, March 1, 2008

Incorrect 1099

June --

Three years as graphic designer. A client sent me a 1099 with $19324 in field #7. But I provided my services for a fixed $1500/month rate. This 2007 I received 24 checks (every 2 weeks for $750 each) but he told me he counted more and that he would double check. That was like 3 weeks ago and he hasn't respond my emails since that. I stopped working for him last December and I would like to know what I can do. If he doesn't correct that 1099 I will end up paying more taxes for the almost $1500 I never got.

Javier from Los Angeles, CA

Hello Javier,

Paid every two weeks ... sounds to me like wages not self-employed income.

Also every two weeks means 26 payments per year. Twice a month would be 24 payments. So the first thing to do is check your records.

If you are right and the client is wrong, then send a letter, return receipt requested. Tell the client you will include a copy of your letter and the incorrect 1099 with your tax return. That should get his attention. If not, then on your tax return include as income only the amount you received.

The hitch here: As I said, the method of payment sounds like wages so be sure you can substantiate your self-employed status.

-- June


Anonymous said...

Every 2 weeks = 26 payments per year, not 36.

June Walker said...

Whoops. 26 weeks. Too hasty.
-- June