| Non-employee compensation filed but was an EMPLOYEE!
My husband worked for a "L" company for part of a year. When we filed taxes and entered the information from the 1099-MISC we received from the company, the tax software asked a lot of questions about being self-employed. We filed right at the deadline that year and, not knowing what to do, we just omitted that form and finished the rest of the taxes and submitted. We knew we would not receive any of the return due to taxes my husband owed fromt he previous year when we are not married because "L" company does not hold out any taxes. We received a letter from the IRS stating that not only do we not get any of the refund, we also owe almost $3000 when he only made $7,700 that year from "L" company. Upon reading the paperwork, we were charged a self-employed tax due to the 1099-MISC submitted by "L" company. My husband was NOT self-employed. He was paid an hourly wage, received 2 raises over the course of his employment AND a Christmas bonus. He did not utilize any work equipment other than what was provided by the employer and doesn't advertise for a business he doesn't have. Unfortunately, he did not receive pay stubs and was paid each week with a check from "L" company (the amounts each week varied by how many hours he worked!). We knew we would owe some taxes on what he made and there is no dispute in that. We do not feel we should have to pay for a self-employed tax. The other issue is that "L" company is owned by his uncle! Advice???? PLEASE HELP!!!!
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