Taxes...People Overcharing on 1099 Form

Updated on February 17, 2012
K.K. asks from Fredericksburg, VA
9 answers

Hi Moms,

I have had 2 tax forms both 1099's and both employers have said I have made "x" amount of dollars on the tax forms. One company has said I made a certain amount and they are way over by $200 dollars. The other company is over by $900. What can I do about this? I have all the copies of checks.


PS They both filled it in under the non-employee this even right?

Update: Firstly; the tax forms were not given by the legal date. One company sent one saying I made only $1050 and then I got another one for some thing like $1270 and I have ever check copied totaling to $1,112. There's a difference there. Funny, I emailed the company the lady who owns it and she's so flaky. She's in disagreement and wrote down a bunch of blabber bs. I have every date and time I have worked for her written down as well as bank receipts. I had used this money to pay off a credit card bill each month, so I know what I made and what I didn't make. As far as the other company; that one is from the dance studio I worked at. They told me never to be in touch with them; funny though they can send me mail any time they want. Anyhow-- that tax form is wrong too. Apparently we dance/fitness teachers get screwed over and only get 1099 and have to pay out of pocket at tax time. Stinks for sure. They did not take any taxes out either of them. They will be making money off of this while I have to pay at tax time. Luckily another 2 jobs I have, took out taxes. The struggle here is the battle! Can I call someone besides these companies I worked for about this issue?

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answers from Dallas on

1099 are usually for non-employees, like contractors. The overage, however, you will have to work out with the company.

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answers from Phoenix on

I'm an owner of an insurance agency and get a 1099. If there is a discrepancy, you have to contact the company, or whoever handles their payroll, if its a payroll service. I had to do this one year, they didn't include one of my fees, it was off by like 3k, so they just issued a revised one and sent it to me. But you have to contact them to get it fixed. Good luck.

1 mom found this helpful


answers from Norfolk on

Hi, Dancer:
Yes, go to your local IRS office with your paperwork.
Let them show you what to do.
Good luck.

1 mom found this helpful


answers from Washington DC on

I would call a tax attorney or the IRS help hotline. Does it make a big difference in what you owe or will get back? I worked as a reading specialist for two yrs and my checks did not have taxes taken out etc. We were told we were independent contract teachers and would get 1099s. I was so screwed come tax time. One of the other teachers, filed a complaint w/the IRS and the following year I received an amended W-2, had to file a 1040X ( or something like that, it's for a corrected 1040 filing). It was a pain but I got back a lot of money. If you don't set your own hours, rate, etc you are considered an employee not contractor. I don't know if that is your case here, but if it's messing you up, you should contact someone. Now, for the missing amount, specifically the 900 difference, is it possible they still owe you a check? Why can't you contact them? That sounds fishy to me. Some companies try to make ppl contractors b/c it put them in a better position in terms of their business taxes. I think bottom line you need to talk to a professional. Good Luck P.S. In my case we did not fall under the parameter of a contract employee, I don't know if you do. I knew this going in, however, I just didn't know the effects it would have on my taxes.


answers from Washington DC on

you're not getting screwed over by getting a 1099. i do piecework here and there and most of the work i get is just like this, being a contractor. it's cheaper for the company and makes more sense for them if they're not hiring you on a permanent basis. why would they assume you want them to mess about with your taxes? they figure you're a grown-up and will handle it just as millions of other contractors do.
take your paperwork to the local IRS office and have them help you with it. be prepared to prove that you made less than your employers claimed.



answers from Tampa on

You can send a Certified/Return Receipt letter to each company stating that you are in receipt of the 1099-MISC for the year 2011 and according to your records the number is incorrect. List the amounts of the checks and dates that you recieved them. Ask them to correct their records and send you a CORRECTED 1099-MISC by X Date.
If the company does not issue a corrected 1099-MISC then you will have to keep a copy of your letter and the dates/checks as the IRS will compare the amount you report and the amount the company reports.

Unless the companies had you fill out a W4 they do not have to withhold any taxes. When you filled out your paperwork to work for them you probably filled out a W9 (where they asked for your SSN) - this form is just to collect your name/address/SSN and is NOT for tax withholding.

You will have to file your return by paper since your 1099-MISC are showing errors (per your calculations). I would also attach a copy of calculations to the return explaining why your numbers are not the same as the 1099-MISC that was sent to you.

Now a few things I noticed,
1) you stated they didn't get the form to you in time - as long as it is MAILED by 1/31/12 - it was done on time. (I state that b/c many people think they need to have the forms in their hands on Jan 31st). Don't make a big deal about it with the IRS or the companies - just not worth it.

2) there seems to already be an issue with you and the Dance Studio (since you can't contact them). YES they can send you the 1099-MISC along with anyother mail that is relevant to that &/or your previous working relationship with them. If you don't want them to send you anything else - then send them a note saying to stop contacting you.

3) You should have questioned the payments as you got your checks if you were not given a breakdown of the taxes withheld.


answers from St. Louis on

Not knowing your arrangement with these companies no one can really answer this question.

Did they withhold taxes? That could account for the difference. None of our checks match our gross income, ya know?

I am assuming since you got a 1099 instead of a w-2 like the rest of us you are a non employee?



answers from Oklahoma City on

You were contract labor at the studio. They don't usually hire employees any other way as far as I know. The one I work in does trade for services to pay for classes or store credit. Some of the kids do get paid cash though. They do give them yearly statements in January.

Sounds like I would make sure to discuss this with the CPA doing your taxes. In this instance I would do that for sure. Then if there is an audit you would have them to go with you. Try one of the mainstream ones instead of an individual.



answers from Washington DC on

If you got 1099-MISC yes they should have your income under Nonemployee compensation. You are a private contractor not their employee. Also they are not required to to withold taxes. You would have had to fill out a W-2 if you wanted taxes witheld. This is something you should have discussed with them when you intitially signed whatever agreement you made to work there. As part of a small business believe me we have to pay our portion of taxes on what you made and then some. They are not making money off of you. Most people understand that if they are getting a 1099 they will be taxed on that income.
As far as the income discrepancy send them copies of all the paystubs you recieved as well as a written note explaining the discrepancy and asking them to show you where the extra income they are recording is coming from. If they refuse to do that take it to the IRS or your CPA.