Address from 1099 Misc

What is the name of your state? CA

My wife got a 1099 misc for a job she did for a company (nurse, it was for one day, $200).

What do i put as the Business Street Address? Our home? the company that sent the 1099 (who hired her), or the place she provided nursing care?

Its being asked on the Form 1040 Schedule C. Do I really need to fill this form out? She didnt really do her own business.

Thank you in advance.

Ow that hurts. Officially, yes. A schedule C is the appropriate form. Because there won't be any schedule SE involved as the amount is so small, I might just drop the amount in as "other income" on the front of the 1040. It's not right and you may get a letter from the IRS, but the tax will be the same and you can just amend the return to the way the IRS wants it (on sch C) if you get a letter. Here's why. The state of CA has a deal with many cities in the state and report when a person has a schedule C. If your address is in the city and there isn't a different address on the schedule C, the city then send a polite demand letter asking why you haven't purchased a business license for the city as yet.

You didn't hear any of this here though. My advice is to make a schedule C and to contact your local government and to get a business license for each year you do business in the city.

tranquility said:

Ow that hurts. Officially, yes. A schedule C is the appropriate form. Because there won't be any schedule SE involved as the amount is so small, I might just drop the amount in as "other income" on the front of the 1040. It's not right and you may get a letter from the IRS, but the tax will be the same and you can just amend the return to the way the IRS wants it (on sch C) if you get a letter. Here's why. The state of CA has a deal with many cities in the state and report when a person has a schedule C. If your address is in the city and there isn't a different address on the schedule C, the city then send a polite demand letter asking why you haven't purchased a business license for the city as yet.

You didn't hear any of this here though. My advice is to make a schedule C and to contact your local government and to get a business license for each year you do business in the city.

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I dont want to do anything I shouldnt. The thing is its not a business. She just did a one day contract job and thats it. She wont be doing any more since she has a job.

I may be confused. I'll check you what your saying on the forms. Thank you.

If she has less than $600 income from 1099misc forms, she does not have to claim the money as income. In fact, the employer was not required to report that income.

If she has less than $600 income from 1099misc forms, she does not have to claim the money as income. In fact, the employer was not required to report that income.

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That is wrong. A person is required to report all income. Including that income which comes in amounts less than $600. The person using the services (not employer) is not required to issue a 1099 for amounts less than $600, but that would not make your problem different. (Unless racer72 is advocating tax fraud. But then, I did sort of allude to city licensing fraud.)

The thing is its not a business.

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Sorry, it is a business. A 1099-misc is for non employee compensation. Your wife did services without being an employee. This is also known as being an independant contractor. This is also a sole proprietorship and is properly reported on schedule C. You should also get a business license for the city she worked in if she met the criteria for so. (Some cities have a minimum amount of business.)

Honestly, I would probably agree with tranq's original suggestion to simply report it as "other" income.

Unless you are filing a paper return the cost of reporting it via a tax professional or online software is going to be ridiculously high.

If someone came to me with a 1099-misc for 200.00 I would put it on schedule C, but I would waive the fees for a schedule C. However, many tax professionals would not do the same....and online software wouldn't allow for that.

tranquility said:

If your address is in the city and there isn't a different address on the schedule C, the city then send a polite demand letter asking why you haven't purchased a business license for the city as yet.

You didn't hear any of this here though. My advice is to make a schedule C and to contact your local government and to get a business license for each year you do business in the city.

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you seem to have a great understanding of this Tranquility but I question your suggested need for a business license. Is Cali that anal that a person who is IC to a (presumably) licensed supplier of services, required to have a business license as well.

If I am understanding the situation correctly, OP's wife was employed by a provider of nursing services. Why would the OP need a business license? The employer would be the one required to have the neccessary business licenses as I see it (although that is based upon a state other than Cali) Obviously the OP would need proper nurses licensure (if and as required), but they are not a business per se and would act under the business license of the employer, would they not?

OP was in fact an employee, or at least seems to be by the inclusion of the question of "the company that sent the 1099". That leads me to believe that OP was an employee of a nursing services provider and was not themselves the supplier of services to the ultimate client (patient) therfore not required to obtain a business license but merely allowed to operate under the providers business license.

What do i put as the Business Street Address? Our home? the company that sent the 1099 (who hired her), or the place she provided nursing care?

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Different cities, different ways. For the last couple of years we've had a number of letters from certain cities to our clients regarding this. One city has no minimum and a little old lady who was a retired travel agent got the letter.

She still had contacts and got some tickets for friends through the system. She reported the money she took in less than the cost of the tickets. This left her with some small amount for gas and travel and whatnot. She had less than $400 taken in with over $300 in direct payments for the items "sold". She literally had less than $100 in income. The business license was reduced because of the small volume of business and she only had to pay $180 for it that year.

I'm not sure if her friends are no longer getting tickets or if she is just not telling us about the money, but her business license has not been renewed. I do have my suspicions as last year she came in with a hat from Barbados and she admitted she hadn't been there. IT HAD BEEN PURCHASED BY A FRIEND! Very suspicious. I'll be watching her very closely this year.

Info edit:
The employee, independant contractor arguement is entirely different and may or may not be true depending on the facts. The "employer" thinks she is an IC, hence a 1099. A W-2 is appropriate for an employee. This would be an entirely different question which would be much harder to fix and require permissions and approvals and many hoops. (Unless "employer" just agreed. Which I don't think he will.)

Sarcasm edit
I wouldn't call them anal, but I wouldn't stand between a politician and a dollar if I didn't want to get steamrolled.

justalayman said:

If I am understanding the situation correctly, OP's wife was employed by a provider of nursing services. Why would the OP need a business license? The employer would be the one required to have the neccessary business licenses as I see it (although that is based upon a state other than Cali) Obviously the OP would need proper nurses licensure (if and as required), but they are not a business per se and would act under the business license of the employer, would they not?

OP was in fact an employee, or at least seems to be by the inclusion of the question of "the company that sent the 1099". That leads me to believe that OP was an employee of a nursing services provider and was not themselves the supplier of services to the ultimate client (patient) therfore not required to obtain a business license but merely allowed to operate under the providers business license.

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Thats exactly correct. Wife was a contractual employee for a day. The company found nurses and signed them up to work somewhere.

Someone told me to contact the company who hired her for the day's HR dept and ask them. I dont want to get a business license as there is no need for it.

Please read my first post on the matter. Nothing you or anyone else has said or believe or think changes that. That is the true answer, unless you can get the company who finds the work to treat your wife as an employee and cancel the 1099 and issue a W-2. I'll bet you $50 they won't.

tranquility, you are misunderstanding my usage of the term "employee".
You seem to use employee only as a term to describe a person that would recieve a w2.

I am using it in the more generic sense in which a company employs another, including an IC.

OP is an IC but they contract to a service that contracts the OP's services to the public in general. Your anecdote is a different situation where the little old lady (LOL) is the entity that is contracting with the public (her friends) to provide a service. I can understand the LOL needing a license for her activities. I just don't understand requiring the OP to acquire a license to be employed (although as an IC) by a company that is actually selling the nursing services to the public.

It may be the OP would need a license in California. I'll defer to those familiar with California. I surely am not, at least not enough to give reasonable response to the need of a business license in the situation at hand.

In my state, a long time ago when I sold real estate (as an IC), I was required to have a real estate license (analogous to OP having a nursing license) but I was never required to have a business license as I performed my services under the business license of the broker who employed me. That is how I see OP's situation but apparently California is a bit more aggressive in finding forms of revenue.

Good point. Just to be sure, I checked the local city licensing requirements. An independant contractor gets a reduced rate of $168 and some cents. At least in my city, an IC would require a business license.

great! that means after taxes OP should be in the hole about $25.

I sure hope she enjoys her job 'cuz it seems that is about all she got out of it that day.

Which is why I originally, wink-wink-nod-nod, mentioned another way of reporting the income which would result in paying the proper amount of tax without causing possible city "entanglements". I agree the city position on the matter is stupid. I think politicians should work harder to reduce taxes and fees rather than increase spending as a general rule. But such is one of the basic tensions of our society.