When does my employer have to file my W-2
form?
Employers must have W-2's to their employees
by January 31st.
I work for a contractor and do not have any
tax withheld from my paycheck. I receive a 1099 at the end of the year. How do
I pay my taxes all year long?
If you make more than $400 from this job, you
should file a 1040-ES (1040 Estimated Payments) on a quarterly basis.
Also note, that you will also be responsible
for paying Social Security taxes on this income, in addition to federal and
state taxes.
I received a 1099DIV, what is it, and what
form should I use?
This is dividend income earned on your
investment. You need to report the amount of the dividend income on Form 1040.
If the amount of all of your interest and dividend income combined is less
than $400, enter your total on line 9 of Form 1040. If the combined total is
$400 or more, you must complete Schedule B.
I received a 1099B, what is it, and what form
should I use?
The sales proceeds from your investments is
reported to you on Form 1099-B. These proceeds will need to be reported on
Schedule D. You will also need to report on Schedule D what your cost was in
each of your investments. The difference between what the investment cost
(plus any dividends re-invested) and what you received from their sale will be
a capital gain or loss. The gain or loss from Schedule D will then need to be
reported on Form 1040.
What is the least amount you can make before
you receive a W-2?
Large companies are required to complete
W-2's for every employee. However, smaller companies may not be required to
file a W-2 if the employee made less than $2,000 for the year.
I received a 1099R, what is it and what form
should I use?
Distributions of your retirement accounts is
reported on 1099R. These distributions are reported on Form 1040.
I sold stock this year, but have not received
a 1099 yet. Can I file my return?
The 1099 isn't really necessary as long as
you know the pertinent Information: Date Acquired, Date Sold, Basis, and
Proceeds.
While the IRS has certain requirements for
brokers to report to them, and to the related taxpayer who sold the
securities, your receipt of a 1099 is not required for you to file your
return.
If you have the above information, you may
report the sale on Schedule D and file your return.
I haven't received a 1099 that I am
expecting. Can I file my return without it?
1099 is more for the benefit of the IRS than
for you. Simply record the income that you received in the appropriate place
on your return. It is not necessary for you to have received a 1099 or to
attach it to your return. It is only required that you report the income that
you received.
Even if you don't know the exact amount that
would have been reported on the 1099, estimate the amount and report it as
income.
I'd like to cash in an insurance policy and
put the money into a mutual fund. Is this cash taxable? What kind of penalty
would we have to pay and to whom?
When you cash in a life insurance policy
early, you will have to pay tax on the "gain" computed as the amount
of the proceeds that exceed the total amount paid for the policy prior to its
cancellation. Typically, you will receive a 1099-R for the gross proceeds
amount and you will need to report it on Form 1040.
My son has lost his W-2. He earned under
$2,000 and thought he had about $50 withheld. I think he has his last check
stub so I can find out his YTD numbers. Will the IRS kick it back because no
W-2 is attached?
Given the numbers in your message, he is not
even required to file a return. He would get back the $50 if he did file. It
is either a $50 lesson in record keeping or he will need to get a copy of his
W-2 from his employer. Since he is not required to file a return in the first
place, the April 15th deadline does not have any real meaning for his
situation.
I received a 1099-MISC listing my payment for
services performed. I do not consider myself to be self-employed. How do I
figure and report social security and Medicare taxes on this amount?
You would need to report the income and
any related expenses as business income on Schedule C. The net income on
Schedule C would be included as income on Form 1040. It would also be used to
compute the Self-employment tax on Schedule SE. The tax computed on SE would
also transfer to the 1040.
I work for a guy that doesn't plan to report
my earnings on a W-2 or 1099, but I want to claim my actual income from this
employer. Can I still send in my tax papers to the IRS and state without
either one of these forms and they will take it from there?
If your employer is not going to pay you
wages and report them on Form W-2, you can still report the income. You will
need to report it as "self-employment" income on Schedule C. Using
this form, you would classify yourself as an independent contractor. You would
be able to deduct any expenses that you have incurred with the employment. The
net income will be subject to self-employment tax (social security) as well as
regular income tax. The self employment tax is computed on schedule SE. Both
require that you file Form 1040.
I have a joint margin account for stock
market investment with my finance. In the case of co-account holders, do we
BOTH have to report the capital gains and losses on our individual tax
returns? Or, can just one of us file the gains/losses?
Technically, you should each report your
share. However, practically, you could report it all on the return for the
person who's social security number is listed on the 1099-B or 1099-Div.
If you opt to report shares, make sure that
the Full amount of the sales proceeds or Dividends are reported on the tax
return of the person who's SSN is on the account. The IRS computers will be
looking to tie out the amounts that have been reported to them. If you report
a lesser amount, the IRS will send you a letter and you'll have to explain it
all again.
Example: You sold a stock for $1000 that you
paid $600 for. That means there is a $400 gain to be split between the two
returns. On the primary return list the full sales price of $1000 and a basis
of $800. On the other return list the sales price for $500 and the basis of
$300. That way the combination of the two returns equals the total gain to be
taxed without alerting the IRS computer about a deficiency on the first.
The employer informed me that they would
issue me a 1099 form. I am awaiting this form but assume it will be a 1099
Misc. Please tell me how to handle this commission income that was paid to me
6 months after I left employment?
More than likely, if there wasn't any
withholding taken from the check, it will be reported to you on a 1099-Misc.
You will need to report the income as "earnings from
self-employment" on Schedule C. The downside is that you will have to pay
self-employment tax (social security) as well as income tax on the income. You
can file your return without having received the 1099. It is more for the IRS
benefit than it is for yours. Unlike a W-2 it is not necessary to attach a
copy of a 1099 to your return, unless, it reports withholding. You could go
ahead and complete your return, just like you would if you had the 1099 form
in your hand.
