<p>My work situation is kind of strange to me and I was hoping you guys can help me figure it out. In Dec of 2010 I got a job at a daycare. They told me to fill out a w-9 instead of a w-2. A w-9 form, if I understand correctly, is a form for contractors in which you pay taxes at the end of a certain term rather than the employer taking out part of your paycheck. As of today (almost 3 months later), I still have not received a 1099 form in order to self report my earnings to the IRS.</p>
<p>On FAFSA it asked how much I made in 2010 and on the side it asked about w-2s and such. I didn't have a w-2 or even received a 1099 form. So I put $0.00 for income. After looking around and did some more research should I edit my already submitted application and put $134 and "will file taxes" or something?</p>
<p>Employers are not required to issue 1099s if income is less than $600 in a calendar year, so that’s why you haven’t received one. In theory you’d need to file a tax return to report this, even though you’d owe no tax.</p>
<p>Your income is under the protected amount for FAFSA, so it doesn’t matter that you reported zero. Your EFC won’t change.</p>
<p>Unless you need to file a tax return for other reasons, if it were me I’d just skip it. However, if you have the $134 in a savings account then that should have been reported on FAFSA as an asset.</p>
<p>No one fills out a W-2 form when they get hired. The W-2 is what your employer sends you (and the IRS) at the end of the tax year reporting all of your income.</p>
<p>A 1099 is a form that is used to report interest and other kinds of reportable income to the IRS. Depending on the kind of income (and the amount, as noted by vballmom), you would receive a W-2 OR a 1099, but not both. If your income was from wages, you should get a W-2. If your income is from interest, dividends, rent, etc., you will get a 1099.</p>
<p>When they get hired, most people fill out an I-9 form, which verifies that they are eligible for employment in the US. In other words, you need to prove you are a citizen or otherwise able to work here. I suspect this is actually what you filled out.</p>
<p>There is something called a W-9 form, but I would be surprised if you filled it out when you were hired.</p>
<p>I am sure I filled out a w-9 because it asked for TIN, name, SSN and so forth (and it said w-9 on the top). I never had to verify by legal residency or citizenship with my employer for some reason. She did however made a copy of my drivers license. </p>
<p>Anyway, I only made about a little over 200 dollars so far. All that I reported as an asset on FAFSA.</p>
<p>You are correct that a W-9 is used for independent contractors–it’s a way for the employer to get the relevant data about the person so a 1099 can be properly issued. However, it is highly unlikely that your work at a daycare would qualify you as an independent contractor under the IRS definition–sounds like your employer was just trying to get out of paying Social Security for you. Not the first time this has happened. If you are working under your employer’s direct control and supervision and your employer sets the hours and other conditions of your work, you’re just a plain old employee, not an independent contractor, and your daycare is not complying with the law.</p>
<p>Yes I thought it was strange that she had me fill out a w-9 but she assured me this was the correct form. I don’t get any benefits or anything like that. I simply get paid. There are certain hours I suppose but most of the time she just asks if I can come in for X amount of time. Lately it hasn’t been much usually like 2 hours a week. I am able to decline if I wish but I have never done so. </p>
<p>Well so far I am just glad that I did not report anything incorrectly on FAFSA and the amount I made in Dec did not need to be reported.</p>
<p>MommaJ is correct - your work wouldn’t put you in the category of jobs/duties that are eligible for independent contractor status. On your paycheck stub, are there deductions for Social Security and Medicare taxes? Even if you’re under the threshold amounts of gross income to trigger federal and state income tax witholdings, your employer must still withold 7.65% of your gross wages for SS/Medicare and must contribute a matching amount. If she isn’t doing that, you’re going to be responsible for both the employer and employee portions next year when you file your tax return, so plan on saving at least 15% of your gross pay just for those taxes, in addition to any federal/state income tax if you earn more than the standard deductions this year. </p>
<p>Incidentally, failure to comply would be illegal on her part and, if that is the case, it likely means that she is violating other statutes, such as those requiring workman’s comp and state disability insurance. Small business that do this are often forced to close when the fed/state labor and tax departments catch up with them. I would find another job.</p>
<p>Thanks for the replies. I will plan on quitting this job come June and finding a job with more hours. I don’t know much about taxes (first “job”, 1st year college kid) but I project that I will make less than 600 dollars this calendar year from this employer. Will I still have to pay taxes when the 1099 arrives, if it arrives? I mean I am making a pittance. Does money really have to go to income tax, SS, and Medicare? </p>
<p>And also, how will this affect FAFSA this new or next year?</p>
<p>If your income is less than $5700 you won’t owe federal income taxes, but you will have to file if you have $600 in IC income and it will be subject to SS and Medicare taxes. Independent contractors file a Schedule C with their 1040s and the unpaid payroll taxes are calculated and added to the income taxes due. </p>
<p>For FAFSA purposes, there’s really no difference whether you are treated as an employee or an IC.</p>