Taxes 1099 but supposed to be W2

Submitted by mommy2boy t3_10wloor in massachusetts

Hi! A family friend has worked at a gas station as a stocker and received a 1099 form but are confused because shouldn’t it be a W2 form? I didn’t know where to go to ask this but when he did ask the owner about the form he’d say “I don’t speak well English but that’s just the form” with no explanation Any advice is appreciated

Edit: a couple things I should mention: my family friend has mental disabilities and does not fully understand forms or being taken advantage of The last name is spelled completely wrong on the 1099 form - can they still file it? Family friend has asked for paystubs in the past and never gets it, sometimes the job does not pay him on time or won’t pay him for hours that he comes in to fix any mistake they’ve made.

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UniWheel t1_j7o0irk wrote

No way a "gas station stocker" is an "independent contractor"

They should file forms SS-8 and 8919 to dump this back on the misclassifying employer

https://www.irs.gov/forms-pubs/about-form-8919

As an actual independent contractor (who exercises actual control over the time, manner, equipment, techniques, etc of my highly specialized client services), this stuff grinds my gears - not only because such grotesque abuses cheat powerless unspecialized workers, but also because they trigger reactions which make it harder for those of us who are truly independent and enjoying the benefits thereof to stay in business.

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mommy2boy OP t1_j7pebvf wrote

Can they fill out this form for 2021 also? He’s autistic and didn’t realize any of this.

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UniWheel t1_j7rqz2n wrote

It's worth looking into if they they could file an amended return for a previous year including such forms, but I'm not a tax expert; I just do my best to stay on top of my own stuff, which so far has been about actual independent consulting rather than needing to push back about an ordinary job mischaracterized as a contracting relationship - which is to say I know those forms exist but hope to never be filing them.

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Linux-Is-Best t1_j7o8vp8 wrote

Opinion: It sounds like possible wage theft and tax evasion.

As others pointed out, the 1099 is not something a regular part-time or full-time employee would use. Assuming their employer has been taking taxes out of their check, that could be both wage theft and tax evasion.

I recall someone, years ago, having their pay deducted for taxes, but the reality was the employer was pocketing it. This way they could technically pay their employee less. And, of course, that meant later, he could pass the taxes off to the employee by claiming they were an independent contractor.

You should have your friend look at his pay stub.

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MoreGuitarPlease t1_j7qivoh wrote

Go see an accountant, this is going to be messy and they’ll need the help.

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hillza87 t1_j7rlxeq wrote

You need to have your friend contact the Volunteer Lawyers Project ASAP! This is gonna be a messy legal situation and your friend is going to need to get a lawyer. the link above will provide your friend with pro bono legal aid and will probably get your friend paid their missing money. This is not a matter that will be taken lightly, but time is of the essence in making sure the proper people are on your friends side.

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mommy2boy OP t1_j7rzqik wrote

Is that just for MA residents or other New England states?

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hillza87 t1_j7s3jq0 wrote

I believe they are MA only. Your best bet is to contact the state bar association of whatever state and ask them about pro bono civil legal aid for low income individuals.

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SunsetShivers t1_j7p16n2 wrote

Ask /r/personalfinance too.

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DBLJ33 t1_j7nuwus wrote

What did your friend fill out when he got hired? 1099 means he’s an indecent contractor. I hope he saved some of his money to pay for the taxes he owes.

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Animallover4321 t1_j7p8qhc wrote

>An employer who wants to treat someone as an independent contractor rather than an employee has to show that the work:

>is done without the direction and control of the employer; and

>is performed outside the usual course of the employer's business; and

>is done by someone who has their own, independent business or trade doing that kind of work.

A gas station clerk or stocker is not an independent contractor. If his employer has filed him as one they’re commuting fraud to get away with paying their share of social security. You are right though if they did they probably didn’t withhold the proper taxes and the friend may owe some taxes (still probably unlikely though because a stocker at a gas station may not make enough).

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