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Earned Income & 1099

  1. profile image48
    amy326204posted 7 years ago

    Ok, so I work for my father and he pays me cash, total this year I earned $15,600, I make $300 a week. I am married but my husband has been out of work this year, we have two kids together so since I get a 1099 and not a W2 am I still eligible for the earned income from the kids or no because it is on a 1099???

    1. Quilligrapher profile image85
      Quilligrapherposted 7 years agoin reply to this

      Employers are required to withhold deductions and to file a W2 form with the IRS for every employee earning over a specified amount.  Gifts to children, however, are not taxed if they are less than the maximum permited. You might want to have a professional compare the advantages of these options.

    2. profile image0
      carburizedposted 7 years agoin reply to this


      Depending on what 1099 form is classified. I believe if you have worked for your father, you could be classified as a contractor or freelance agent. In these case, your income will be earned income and can be used for earned income credits on your children. Since you got this cash, Irs would like to know the proof. May be you can provide  your fathers ss number and address to the IRS authority to provr your income.

      1. Aficionada profile image86
        Aficionadaposted 7 years agoin reply to this

        This is correct. That is, that you (Amy) would be considered a contractor or freelancer.  The income would be reported on form 1040, line 21 (that was the line number on the 2009 form) as "Other Income."  It will still be a part of your Adjusted Gross Income.  You should go to irs.gov and double-check to see whether you are eligible for Earned Income Credit, since there are penalties for taking EIC fraudulently or knowingly.  That is not your case, of course - you are trying to find out whether you would qualify.  But the IRS site would be a good place to check.  As far as the 1099 form goes, though, that should not be any problem.

        The EIC can give a refund even when no tax is owed.  But since tax was not withheld from the income reported on the 1099, you would first have to show on the 1040 form whether any tax was owed and how much, and then see whether you are eligible to receive the EIC.  Based on what you wrote (amount of income and number of children) and based on the 2009 1040 instruction book which I have been checking, I believe you would be eligible to receive the EIC. 

        But I am not a tax preparer or consultant.  I just happen to have reviewed a lot of tax materials within this past week, and I had the 1040 instruction booklet right at hand. (You do have to check "married filing jointly," even if your husband had no income, in order to qualify for the EIC.)

    3. profile image52
      DavidBisbeeposted 7 years agoin reply to this

      I am a tax professional with 15 years experience and I can help you if you want me to help.  As each individual situation is different, it is difficult to completely and accurately assess your situation without working with all your documents.  Reply back if want my assistance.

      1. profile image45
        kim barberposted 7 years agoin reply to this

        I am needing some help with questions with taxes I clean for a few people and they pay me cash when I am done that day, what forms do I feel out and what is the least amount and the most amount you can have without a w-2 or 1099?  Then am I able to qualify for EIC?

        1. profile image52
          DavidBisbeeposted 7 years agoin reply to this

          Every dollar you get paid you need to report as income.  You will need to complete a Schedule C on your tax return.  Deduct your expenses for supplies, insurance, mileage, etc to come up with your taxable income.  Depending on your filing status (single, married filing joint, head of household) and the number of your dependents, you may receive an earned income tax credit.  If you want me to contact you and review your situation in more detail, please provide contact information.

    4. profile image48
      RJFights54posted 6 years agoin reply to this

      def get an answer to a tax question in September, its like 10 lil questions in one so let's start with the reason I am looking for answers in sept...I am self employed carpet layer in Ohio I make on avg 23000 a year every year my wife and me file differently depending on who does our taxes we hav 4 children total and 2 together, she makes about 19000 a year W-2 mine is a 1099, the new guy that I'm workin for told me I can get 55cents a mile as instead of the 6000 bucks in gas I usually get credit for is this true, if you sense excitement its cuz I drive 600 miles a week for the new guy, my math says that is over 15000 dollars a year, CATCH? Or legit, that's the main question if you wanna answer the lil ones in ALL the info I had to give to make sure I did my part (info wise) thx, and I won't hold ya to it, funny how I treat u as a TAX GOD but the idiots that do them, my wife just tells me what we owe and I pay the man, HELP ME do better please

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