Discussion:Mileage deuction for temporary job in which a 1099 is received
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| Revision as of 22:42, 17 April 2009 David1980 (Talk | contribs) (If she isn't sel) ← Previous diff |
Revision as of 00:34, 18 April 2009 TheTinCook (Talk | contribs) (''"if she is not) Next diff → |
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| {{ForumReplyPost|UserID=David1980|Date=17 April 2009|Text=If she isn't self-employed but rather an employee, 8919 and SS-8. She is not forced to file a Schedule C.}} | {{ForumReplyPost|UserID=David1980|Date=17 April 2009|Text=If she isn't self-employed but rather an employee, 8919 and SS-8. She is not forced to file a Schedule C.}} | ||
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| + | {{ForumReplyPost|UserID=TheTinCook|Date=18 April 2009|Text=''"if she is not self-employed, then shouldn't she be able to put this on line 21? "'' | ||
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| + | If she's a misclassified employee, it goes on line 7. See David1980's post also.}} | ||
Revision as of 00:34, 18 April 2009
Discussion Forum Index --> Basic Tax Questions --> Mileage deuction for temporary job in which a 1099 is received
Discussion Forum Index --> Tax Questions --> Mileage deuction for temporary job in which a 1099 is received
| 16 April 2009 | |
| college student has summer job out of state and gets a 1099 misc for wages. She doesn't really have a business, but in the eyes of the irs she does. The job provides housing for her, but she has 2200 miles in traveling from housing to job site and approx. 1000 miles from college to the housing. Can she deduct this mileage? | |
| April 16, 2009 | |
| No, only if she went from school to work in the same day. | |
| 16 April 2009 | |
| Thanks for your reply. Why wouldn't this be considered a temporary job and the mileage be deducted on sch c? she says that her coworkers told her she could deduct the mileage. i have been researching this and so far haven't found anything close to this situation. | |
| April 16, 2009 | |
| Because if she goes home each day and travels to the office and back home from the office it is called commuting mileage and commuting mileage is not deductible | |
| April 16, 2009 | |
| also, if she does not really have a business then she does not really have business mileages | |
Death&Taxes (talk|edits) said: | 16 April 2009 |
| You might read this discussion for more talking points: Discussion: Travel Expenses | |
Brock And Associates (talk|edits) said: | 17 April 2009 |
| I just had an electric jolt from the PTSD of my mileage thread run up my spine! :D
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TheTinCook (talk|edits) said: | 17 April 2009 |
| Not enough facts in evidence.
We don't know where her tax home is, We don't know where her metro area is, We don't know the distances between the places, We don't know the circumstances of the work provided housing, We don't know the frequencies and reasons for the trips... Can't tell what's deductible or not without that. | |
| 17 April 2009 | |
| Thanks for all your replies. She goes to school in Georgia and the summer job (working for a theater company) was in Virginia. She drove her car to Virginia for the job. The theater co. put her up in a house and she drove from the house (not her home in GA) to the theater for work every day. She put close to 3500 miles on her car. She received a 1099 misc. (for $1800 in box 7) rather than a w-2 and was required to file a sch. c and pay s-e taxes, unless you know of a way around this. Since she is considered self-employed by the IRS (in reality, just a student working a summer job), can't she deduct the mileage to reduce the amount of s-e tax? I would say that her tax home is in Georgia and the job in VA. was temporary (less than 1 yr.). | |
| 17 April 2009 | |
| "2008 Instructions for Schedule C
Use Schedule C (Form 1040) to report income or loss from a business you operated or a Profit or Loss profession you practiced as a sole proprietor. An activity qualifies as a business if your primary purpose for engaging in the activity is for income or profit and you are involved in the activity with continuity and regularity. For example, a sporadic activity or a hobby does not qualify as a business. To report income from a nonbusiness activity, see the instructions for Form 1040, line 21, or Form 1040NR, line 21." Doesn't appear to me this is a business activity. I would report it on Line 21 with a non-trade explanation. See Batok vs Commissioner. Form 8819 could be used with a SS-8 filing but I favor the former. | |
| 17 April 2009 | |
| Solomon - line 21 because no profit motive or because sporadic activity? Not sure I agree with you on this. She worked all summer.
Agree with TheTin. Need more info, especially regarding tax home. | |
| 17 April 2009 | |
| I do not think the IRS would consider her self-employed. Rather she was an employee stiffed for SS and Medicare. Wouldn't building a case on self employment just crumble under IRS scrutiny? | |
Westerntreks (talk|edits) said: | 17 April 2009 |
| Does the "free rent" bother anyone else? Was the fmv of the housing included on the 1099 or was it "gifted" to her. The housing fmv sounds at least like barter income to me. | |
Brock And Associates (talk|edits) said: | 17 April 2009 |
| I will give you the correct answer.... no one knows.
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Westerntreks (talk|edits) said: | 17 April 2009 |
| I don't think it is all that murky. No one sent her to Virgina on temporary assignment - she simply accepted a short-term job offer. She had a temporary job and lived in temporary housing - thus she's more an itinerate worker than anything else and not entitled to any mileage. The summer job fails the 39 week time test so she can't take moving expenses. The trip from the housing to the job is plain ordinary commuting - no deductions anywhere that I can see!
She took the job to make money, sounds like a profit motive and schedule C to me. And she did earn income (and free housing) so someone has to pay the SS and Medicare. On the otherhand, if she fails the tests for being a contractor submit the SS-8 and apply to have her ruled an employee. | |
| 17 April 2009 | |
| again thanks to all. i would love to put this on line 21, but it does represent wages. i agree with EasternPA, she was stiffed. just wish there was a way around this. you stated that the irs would not consider her self-employed, but requiring her to report this on sch c says otherwise. they can't have it both ways. if she is not self-employed, then shouldn't she be able to put this on line 21? does she really have a tax home since she doesn't have a steady job? she goes to college 9 mos. out of the yr. Would that be considered her tax home? there was no contract, so don't know about housing, probably could argue that it was part of compensation. i realize the amount is small, but i just wanted clarification for next time. Guess there is no clear cut answer, just make a decision and deal with the consequences. | |
| 17 April 2009 | |
| If she isn't self-employed but rather an employee, 8919 and SS-8. She is not forced to file a Schedule C. | |
TheTinCook (talk|edits) said: | 18 April 2009 |
| "if she is not self-employed, then shouldn't she be able to put this on line 21? "
If she's a misclassified employee, it goes on line 7. See David1980's post also. | |
