Follow-up query on 1099Misc confusion
- From: "MZB" <moo@xxxxxxxxxxxxxxxxx>
- Date: Sun, 2 Apr 2006 14:00:38 -0400
OK, I recently posted the following:
My daughter works for a production company in California. As part of her
compensation, she received an allowance because she used her own computer.
Say she received $3000. She got a 1099MISC for $3000.
But, when trying to use TT and adding the 1099MISC, it requires a link to
either a schedule E, Schedule C, or Form 4835, none of which seems
appropriate. So, I wonder if this is an error on her employer's part?? Is
this the wrong 1099.
Also, to be pragmatic, can she just enter this figure on the OTHER INCOME
line and specifiy 1099-MISC-computer usage????
(She plans not to itemize and just take the standard deduction)
Mel
.
It appears that the employer is in error doing it this way (intentional or
unintentional, I don't know for sure).
But, perhaps we can turn this lemon into lemonade.
As was suggested, this can be linked to a Schedule C. Well, okay, then can't
she expense the purchase of her computer (she got a deal for $1000, a new
MAC, in 2005)? Also, then let's go with it: she apparently now has a
computer business. Couldn't she deduct her mileage to work (consider this
her first job, doing the computer work at home which she often does and then
commuting to her "second" job)? She also has other job-related mileage.
Without her Schedule C, she could not deduct any of this as the sum does not
exceed her standard deduction. But if they are giving her a 1099 MISC, then
it seems she can now do all this.
So two questions:
1) What about the above? Am I correct in this interpretation?
2) As was stated, she now apparently owes FICA, Medicare, etc. Where does
she list this on her taxes??
Mel
.
- Prev by Date: Re: EXCESS CONTRIBUTION TO 401K
- Next by Date: Re: Real estate capital gains 2 yr rule - Interesting exception question...
- Previous by thread: Re: Calculations for Alternative Minimum Tax
- Next by thread: tax rate
- Index(es):
Relevant Pages
|
