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Author: Brewologist Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121788  
Subject: Side income documentation Date: 3/5/2014 12:08 PM
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I have a question about how to split side job income. My wife taught a one day workshop in another state with a coworker and was paid $750 by check made out to her. She then wrote a $375 check to the coworker. I think that what should happen is she should get a 1099 for the $750 (she hasn't, we've inquired as to the hold-up but this non-profit seems to be disorganized) and then issue a 1099-misc for the $375 to the coworker. But I usually just use Turbotax and admit that my understanding of the IRS regulations is limited. If the experts here could point me to the right references that would be great. What is the correct way to file taxes on this income?
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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120369 of 121788
Subject: Re: Side income documentation Date: 3/5/2014 12:53 PM
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Your wife should receive a 1099 because she was paid over $600. Since she paid the co-worker less than $600, I don't believe a 1099 to the co-worker is required. If she wishes to issue a 1099, she doesn't need to wait for her 1099. 1099s are required to be issued on original forms. If she intends upon issuing a 1099, request printed forms should be requested from the IRS. I was surprised that tax software isn't permitted to print 1099s.

Since she knows the amount she was paid and their isn't any withholding, she doesn't need the 1099 to file her taxes.

File Form 1099-MISC for each person to whom you have paid at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest; at least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate; any fishing boat proceeds, or gross proceeds of $600, or more paid to an attorney during the year.

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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120371 of 121788
Subject: Re: Side income documentation Date: 3/5/2014 1:13 PM
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I was surprised that tax software isn't permitted to print 1099s.

Tax software can't print 1099-MISC because the IRS requires Copy A be printed with a special red ink that isn't seen by the optical scanners in use.

Ira

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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120373 of 121788
Subject: Re: Side income documentation Date: 3/5/2014 1:50 PM
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Brewologist: "I have a question about how to split side job income. My wife taught a one day workshop in another state with a coworker . . . . "

Does the "other state" have an income tax?

If yes, have you reviewed the filing requirements (or more importantly, the exceptions and/or exclusions)?

Regards, JAFO

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Author: Brewologist Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120374 of 121788
Subject: Re: Side income documentation Date: 3/5/2014 3:14 PM
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Does the "other state" have an income tax?

If yes, have you reviewed the filing requirements (or more importantly, the exceptions and/or exclusions)?


The money was earned in Wisconsin (we live in MA) and I assumed we would owe state tax there, but I haven't yet dug into the details. Thank you for the suggestion.

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Author: Brewologist Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120375 of 121788
Subject: Re: Side income documentation Date: 3/5/2014 3:36 PM
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OK, so I'm confused if we need to file a WI return or not. The I-152 Form 1NPR instructions referred me to Pub 122, where it's clear she would count as a non-resident. It then states:

"If you are a nonresident or part-year resident of Wisconsin and your gross income (or the combined gross income of you and your spouse) is $2,000 or more for 2013, you must file a 2013 Wisconsin income tax return."

and defines gross income thusly:

"“Gross income” means all income (before deducting expenses) reportable to Wisconsin that is received in the form of money, property, or services. It doesn’t include items that are exempt from Wisconsin income
tax, such as U.S. government interest."

I'm confused by the clause "reportable to Wisconsin" and can't find a reference to what is reported. Is it just the $750, in which case we wouldn't have to file a WI return?

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