1099-MISC dilemma

[ttranmd]

What is the name of your state (only U.S. law)? Florida

Hi, I happened upon this forum and had a question I hoped someone could answer. I am a physician working for a company, and I derive my salary from them as a certain percentage of everything that I bring in. I also work as a medical director for a different company. They issue me a monthly check as compensation for my duties, and I turn in this check to my company. As a result, the money that I receive from them already has the taxes taken out, and I do not actually see the "money" I receive from this other company.

I have filled out my taxes based on the W2 of the first company, but have just received a 1099-MISC from the second company. I do not want to be taxed twice for the same amount of money. How do I handle this problem on my tax return? Thanks!

[tranquility]

If I understand you correctly, I'd place a statement on the back of your return explaining how you were just a nominee. That may not be the correct application of the facts, but to really give more would require an interview regarding the facts.

[irsos]

Originally Posted by ttranmd

What is the name of your state (only U.S. law)? Florida

Hi, I happened upon this forum and had a question I hoped someone could answer. I am a physician working for a company, and I derive my salary from them as a certain percentage of everything that I bring in. I also work as a medical director for a different company. They issue me a monthly check as compensation for my duties, and I turn in this check to my company. As a result, the money that I receive from them already has the taxes taken out, and I do not actually see the "money" I receive from this other company.

I have filled out my taxes based on the W2 of the first company, but have just received a 1099-MISC from the second company. I do not want to be taxed twice for the same amount of money. How do I handle this problem on my tax return? Thanks!

You speak of these two companies like third party outsiders yet it makes no sense you would turn over your check from one and give it to the other. You slipped once and referred to one as "my company". I think you are trying to be clever here. What type enitity is each company and what is your ownership in each?

[ttranmd]

Sorry, I am not trying to be clever. When I refer to "my company", it is the main company that I work for, as a physician. My contract with them stipulates that my salary is a percentage of all the revenue (hospital charges, office visit, medical directorships, etc) that I bring into the group. They are my main employers.

The second company that I work for is as a medical director. My fee that I receive from them goes to the first company, but they write out a monthly check to me, and I simply turn it into the first company. I get my percentage from that fee, but the first company takes out taxes already.

I got the 1099 MISC from the second company, without taxes taken out. My problem is that I already get withholdings from when I turn in their check to my first company, and I don't want to have to get taxed on my tax return when I enter the second company's 1099 income.

[LdiJ]

Originally Posted by ttranmd

Sorry, I am not trying to be clever. When I refer to "my company", it is the main company that I work for, as a physician. My contract with them stipulates that my salary is a percentage of all the revenue (hospital charges, office visit, medical directorships, etc) that I bring into the group. They are my main employers.

The second company that I work for is as a medical director. My fee that I receive from them goes to the first company, but they write out a monthly check to me, and I simply turn it into the first company. I get my percentage from that fee, but the first company takes out taxes already.

I got the 1099 MISC from the second company, without taxes taken out. My problem is that I already get withholdings from when I turn in their check to my first company, and I don't want to have to get taxed on my tax return when I enter the second company's 1099 income.

Tranq's advice works, but there is also another option if you are filing electronically.

You can put the income on schedule C, and the in "other expenses" note 1099 income from XXX company transferred as nominee to XXX company. and deduct it in full.

For the future, I would suggest that you arrange with the second company, to pay the first company for your services, rather than paying you directly. That eliminates the entire problem.

[momm2500]

have you contacted "my Company" regarding the 1099 you received? Have you consultated a tax attorney or an accountant? if you have an accountant do your takes, take the information to them. But you need to talk to the first company since they already took taxes out.