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

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 In my opinion, the 1099 needs to be rescinded and the W-2 corrected.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.

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

As I stated in my initial post, the taxpayer "could" have been considered a self-employed painter and a 1099 would have been appropriate. However, the facts made it very clear that was not the case. Try walking these facts through form SS-8 and see how far you get. I could envision the employee being asked to perform other "chores" to quote the poster, such as counting inventory at year end or helping move the employer from one office to another. So under your theory, the employer would issue a