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OK what do you do when an independent contractor will not give you her social security number? file a 1099 any way?

You backup withhold at the rate of 28%, then show the withholding on the 1099-MISC you give the person at the end of the year. I believe this is covered in the instructions for Form W-9.

The withholding is paid over to the gummint on Form 945. It's an annual return, but periodic deposits of to-date withholding may be required. See the 945 instructions.

especially seeing how the home owner wonts to keep going the way things are. (we know this is an American).


home owners tax situation is, that at the end of the year they are going to have to pay either income tax on the stock, that is sold to pay for this and or issue the 1099. is that legal? never run across this kind of situation before.

I'm confused. If someone sells stock (s)he reports the sale and pays tax on any capital gain. Totally unrelated, if one incurs a deductible expense one deducts that expense. There's no off-the-return "netting."

can not get him to change, so is this a kind of crash and burn situation and just wait for it to happen. I have the original letter stating she is an independent contractor.

OK, the light just went on, but I won't bother going back to revise. We're talking about the caregiver discussed in the previous thread. As I mentioned there, the letter isn't worth squat.

Assuming they can get the necessary documentation explained under long-term care in Publication 502, what they pay the caregiver, including any taxes on those payments, is a Schedule A medical itemized deduction.

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