Does it matter who issues a 1099 - I worked in hair salon as a "booth renter" however the owner of the salon kept all the money I made through the week and then gave me a portion back at the end of the week. She is saying I need to submit a 1099 to her because I was the booth renter - however, I feel that since she keep all the money through the week and only gave me my portion - she should issue the 1099. Is there any legal or tax issues if I do the 1099 to her versus she issueing it to me?
State/Country relating to Question: New York
Good morning,I'm sorry to hear of your dilemma.How were you paid? What was the percentage that you received back for the work that you did during the week?In the situation you describe, either you were an employee---in which case the employer would have been obligated to withhold taxes, or you were an independent contractor, in which case you would have been paid a percentage of the income you earned for the company.Did you pay ONLY booth rent, or a percentage of the money you earned as well?Who supplied all of the equipment you worked with?Doug
Payment was in cash and it was 51% of my total for the week. No taxes were withheld. She is stating I was only a booth renter. I bought my own supplies - she supplied the "station" to work at. I want to make sure that it doesn't effect the "botXXXXX XXXXXne" of my tax return if I submit the 1099 vs owner.
You were treated as an independant contractor. Did you pay ONLY booth rent, or a percentage of the money you earned as well?
She kept a flat 49% and she noted it as all booth rent.
Good afternoon,You were not really paying booth rent, you had a partner in a business operation, or you were an independent contractor who was paid a percentage of the gross receipts related to your work.You never paid her a dime. You simply turned all of your money over to her as you would if you were just a cashier in a convenience store. Instead of wages you received a percentage of the company income attributable to your work.She paid you weekly. She should be issuing you a 1099 based on the wages she paid to you. All the money she kept was her share of the profit. As you did not pay her anything, it is not appropriate for you to issue her a 1099, or deduct the money paid for "booth rent" because it was not your money that you handed over to her.You don't need to give her a 1099---she needs to give you one. I wish you the best in 2012.Because I help people here, like you, for a living---this is not a hobby for me, and I sincerely XXXXX XXXXX abiding by the honor system as regards XXXXX XXXXX I wish you and your family the best in your respective futures. Would you be so kind as to Accept my Answer so that I may be compensated for assisting you? Bonuses for greatly informative and helpful answers are very much appreciated. Thanks Again, Doug
I understand and agree with what you are saying but you didn't answer my question:
Is there any legal or tax issues if I do the 1099 to her versus she issueing it to me?
She is going to be difficult - I want to make sure that if I do the 1099 it doesn't effect the "botXXXXX XXXXXne" of my tax return.
You don't have the legal right to issue her a 1099. It could be considered fraudulent, as you did not pay her any money. But no, it will not effect your tax return unless you try to deduct the money reported on the 1099.The 1099 would have only been legal for you to give her if YOU had kept all of the money and you paid her "rent". That is not what happened.Because I help people here, like you, for a living---this is not a hobby for me, and I sincerely XXXXX XXXXX abiding by the honor system as regards XXXXX XXXXX I wish you and your family the best in your respective futures. Would you be so kind as to Accept my Answer so that I may be compensated for assisting you? Bonuses for greatly informative and helpful answers are very much appreciated. Thanks Again, Doug
I am a practicing attorney with more than 27 years of experience in the legal field.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).