Do having 1099s give more aid for colleges, especially those that meet close to 100% or 100% need? My mom earns money from non-contract employers, which are supposed to be 1099, but her employers haven’t or don’t want to file 1099s…so would I get more aid or the same amount of aid even if it’s just all untaxable income?
I know that my mom has to pay the government back about $1900-2000… (not familiar), but she’d rather not ask for 1099s now…but I was wondering if colleges would somehow question the income that my mom is earning.
It’s the amount of your mom’s income that matters. If she earns less than a certain amount from an employer, they are not required to file a 1099.
Your mom, however, should be keeping excellent records of her earnings…excellent ones. It is very possible you will be asked to document those for a college…or two.
Mostly it’s the employers who get in trouble for not filing the 1099s, not your mom, as long as she declares the income. They’re supposed to do it if they pay her more than $600 in a year but she has to declare it either way.
Her own records are fine. If the company doesn’t send the 1099, that’s its issue with the IRS.
Although, it is only 2/3, and the 1099s only had to be mailed last Saturday so more may still come in. My brother is a contractor and received about 10 yesterday.
Real live CPA/tax guy here: your mom should be reporting all her income whether or not they issue her a 1099. The company may later issue the 1099s and then she’ll have a big problem if she didn’t already report it.
The company has to issue the 1099 to substantiate their deduction of the payment to contractors, if they don’t issue then the IRS can disallow the deduction. All business tax returns have a question asking whether or not 1099s were issued.
It can get ugly when it catches up to you. I have a new client that hasn’t filed corporate taxes since 2011, but they now want to get all caught up. They will be issuing 1099s for 2012 & 2013. So now all the people who worked with them and did not report he income will have instant tax troubles.
My mom has to pay 2k+ to the government. If I send in her tax returns now, can she file again with her 1099s later so she doesn’t have to pay anymore, or is that not allowed?
I defer to the accountant posting in this thread but whether or not she gets a 1099 she should be declaring the same income. Are you asking if she can not declare that income until the 1099 comes or are you asking if she needs to file again to move the income from not-on-a-1099 to a on-a-1099?
Not sure what you mean by this. Your mom’s income reporting should be the same whether she has 1099s or not. In other words, her income should be different. At all.
Her tax liability will the same whether she has 1099s…or not…because her actual income will be the same.
If she owes $2000 to the government…she is going to owe that whether she has 1099s or not.
No, that’s not the way it works. As others have said, if your mom is fully reporting her income without the 1099s, then nothing will change if she receives 1099s.
If you are asking if she can PAY the $2000she owes later, the answer is yes, until 4/15 without penalty (unless she was supposed to pay quarterly). She can submit now and then pay by 4/15.
You say she has to ‘pay the government back’ about $2000. Is that a past due amount from 2013 or earlier?
A 1099 (or no 1099) is in many ways worse than a W-2 because no income or employment taxes were withheld and the contract worker also pays what would be the employer’s share of social security and Medicare tax as well. Federal and state income tax plus the 15.3% hit for SS and Medicare can add up to 50% of the amount earned.
Has your mom made any quarterly estimate payments or has she saved any money toward her taxes?