What is the name of your state? TN
Ok, this all broke loose yesterday, 4/10, when my employer handed me a W-2C. It created a freak-out on my end, to say the least. The outcome is I need to file some form to request a refund of the self-employment estimated taxes I paid 2nd & 3rd quarter of 2002 - or so they tell me.
A few background details.
Last April, I was hired as a contractor by this company.
I worked for several months as a contractor. I filed and paid 2nd and 3rd quarter estimated SE taxes.
On 9/3, I became an employee of this same company.
In Jan, I was sent a 1099-Misc from this company for my contracting stint (the 1099 turned out to be incorrect anyway).
I was also sent a W-2 for the Sept-Dec period of 2002 as an actual employee.
When I got the first corrected W-2C yesterday, I noticed the gross numbers didn't add up and they had a number in there for SS and Medicare taxes which was WAY more than what was right for only 4 months of actual employment. So, I called payroll right away, not understanding how my wages for 4 months could have jumped so dramatically.
It appears that it is corp policy that they can't issue a 1099 AND a W-2 in the same tax year. Now, I've been in this situation before where I worked contract as an IC and was later hired, and the 1099-Misc AND W-2 thing from the same company wasn't a problem.
So, what they did was they 'grossed up' my wages to somehow include the SS and employment taxes and they ADDED to the W2 what I'd been paid as a contractor. So the new gross is a combined total of contractor + employee wages.
I then asked them how that works when I had paid in SE taxes for 2 quarters of the year. They tell me I have to request a refund of the SE taxes.
Well, here's another wrinkle, at least to my non-CPA mind. The original W2 shows Withholding tax consistent with 4 months of wages. The W2-C shows NO INCREASE to that withholding amount, so the withholding is far from enough to cover what is now showing as my GROSS wages ! Yes, I paid in the withholding with my estimated tax payments, but if I now re-do my tax return w/o a 1099-Misc, how on earth do I show that I DID make estimated tax payments to cover the withholding ??? How would I get credit for that 'employer' portion I'd normally get back ??
I'm SO confused, and don't feel comfortable redoing my taxes until I can understand how to fix this. I also haven't a clue what form I'd need to request the SE tax refund or how I'd explain why I'm entitled to the refund.
4 days before the deadline, finding an accountant that can figure this out is going to be next to impossible. I don't even know how I would file for an extension, since you have to pay 90% of any tax owed and I have NO CLUE what I would put on the forms as AGI let alone be able to figure out whether I'd owe taxes or be getting a refund.
Ok, this all broke loose yesterday, 4/10, when my employer handed me a W-2C. It created a freak-out on my end, to say the least. The outcome is I need to file some form to request a refund of the self-employment estimated taxes I paid 2nd & 3rd quarter of 2002 - or so they tell me.
A few background details.
Last April, I was hired as a contractor by this company.
I worked for several months as a contractor. I filed and paid 2nd and 3rd quarter estimated SE taxes.
On 9/3, I became an employee of this same company.
In Jan, I was sent a 1099-Misc from this company for my contracting stint (the 1099 turned out to be incorrect anyway).
I was also sent a W-2 for the Sept-Dec period of 2002 as an actual employee.
When I got the first corrected W-2C yesterday, I noticed the gross numbers didn't add up and they had a number in there for SS and Medicare taxes which was WAY more than what was right for only 4 months of actual employment. So, I called payroll right away, not understanding how my wages for 4 months could have jumped so dramatically.
It appears that it is corp policy that they can't issue a 1099 AND a W-2 in the same tax year. Now, I've been in this situation before where I worked contract as an IC and was later hired, and the 1099-Misc AND W-2 thing from the same company wasn't a problem.
So, what they did was they 'grossed up' my wages to somehow include the SS and employment taxes and they ADDED to the W2 what I'd been paid as a contractor. So the new gross is a combined total of contractor + employee wages.
I then asked them how that works when I had paid in SE taxes for 2 quarters of the year. They tell me I have to request a refund of the SE taxes.
Well, here's another wrinkle, at least to my non-CPA mind. The original W2 shows Withholding tax consistent with 4 months of wages. The W2-C shows NO INCREASE to that withholding amount, so the withholding is far from enough to cover what is now showing as my GROSS wages ! Yes, I paid in the withholding with my estimated tax payments, but if I now re-do my tax return w/o a 1099-Misc, how on earth do I show that I DID make estimated tax payments to cover the withholding ??? How would I get credit for that 'employer' portion I'd normally get back ??
I'm SO confused, and don't feel comfortable redoing my taxes until I can understand how to fix this. I also haven't a clue what form I'd need to request the SE tax refund or how I'd explain why I'm entitled to the refund.
4 days before the deadline, finding an accountant that can figure this out is going to be next to impossible. I don't even know how I would file for an extension, since you have to pay 90% of any tax owed and I have NO CLUE what I would put on the forms as AGI let alone be able to figure out whether I'd owe taxes or be getting a refund.
. Now, where on this 1040 do I put down where I made estimated tax payments ?? I have today and tomorrow to get this right... drives me crazy. In a way, its a good thing I waited too long this year - no amended return necessary.