Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-30-2009, 12:01 PM
Junior Member
 
Join Date: Jan 2009
Posts: 1
1099 misc?

I watched my mother for 4 months and was paid $6000. I claimed this on my 2008 taxes. Was my mother suppose to file an 1099 with me and if so what will happen now that she didnt?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-30-2009, 12:16 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
According to the tax law, yes, any persons making payments in excess of $600 to an individual is required to file a 1099-Misc and report these amounts paid individuals to the IRS! Thus, technically, your Mother would be required to provide you with a 1099-Misc and submit a 1096 to the IRS, thus reporting your income to the IRS.

But, I don't know why you claimed this amount on your taxes? Your Mother could have gifted you this amount and you would not have to pay any TAXES at all! According to the IRS tax code, "the Annual Gift Exclusions for 2007 and 2008 Tax Year is currently set at $12,000." This means the amount paid to you by your mother does not exceed $12,000 and may not be reportable income.

Now, if your Mother has already gifted you $12,000 then that is a different story. Your Mother may have to file a Gift tax return and report the payment to you.

I suggest that you immediately consult a CPA or a Tax Adviser and seek their advice as to whether or not you should consider amending your return and to determine whether the amount that you claimed on your tax return was appropriately considered as income or could it be considered a Gift. If it is determined to be a Gift, then perhaps you should amend your tax return and get a tax refund on the amount of taxes paid on the $6,000 received from your Mother.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
1099-MISC For Spouse? mr-ed Income 4 01-30-2009 10:42 PM
1099 MISC question dirwin76 Income 1 03-27-2008 10:25 AM
1099-Misc Income and IRA sirscott IRA/Sep 2 03-02-2008 02:35 AM
1099-misc Jaduexclens Income 1 02-22-2008 07:23 PM
1099-MISC income guidowitz Income 3 02-14-2008 12:07 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.