1. Home
  2. Taxes General Forum
  3. How to Report Painting the Office (1099 Non-Employee Compensation)

How to Report Painting the Office (1099 Non-Employee Compensation)

The IRS info is very confusing on this point. This person received compensation of about $3000 for office painting (not a part of his regular job) at the business at which he was employed. The employer reported this on a 1099-Misc Form as "non-employee compensation." Does this properly belong on Schedule C? (The IRS seems to suggest that it should be even though he is not technically self-employed and does not seem to operate a "sole proprietorship.")I have no idea what to include, and what is the "principal business?" The office girl says to put the name of the business there and then put the person's home address in the address area. That doesn't seem right at all! I would not expect this activity to recur, but other "chores" for pay are possible sporadically over time at the company. Please explain what lines should be included. I expect most of Schedule C would be left blank. Very confusing! Thank you! Frank

> > > > > > > > >
Reply to
frank1492
Loading thread data ...

The general rule is that if you are an employee, all compensation should be reported on a W-2, with appropriate withholding. An arguement could be made to the contrary if you had a side business that did painting for other customers and held yourself out to the public in that regard. In my opinion, the 1099 needs to be rescinded and the W-2 corrected. In case that does not happen and/or you do not want to press the issue, you would report the income on a Schedule C -- and take appropriate deductions.

Reply to
Mike Wellman

Employer handled everything properly (apologies to Mike Wellman). An mainline employee, 40 hours a week, regular paid guy, gets a W2 for his "day job". But he could be a self employed painter for anybody, including his regular employer. Use a schedule c. principal business is "construction - painting", and name of business is "self", and address is home address. If employer didn't furnish all the supplies, don't forget to deduct any of those on the schedule c. ChEAr$, Harlan Lunsford, EA n LA

Reply to
Harlan Lunsford

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.