Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

Reply
Pioneer
Posts: 2
Registered: ‎04-06-2017

1099 puzzle

Hello, 

 

Thanks in advance for looking at it and offering insight.

 

I work as an "independent contractor" at a clinic, lets call the clinic A, lets call me J.  J received a 1099-misc from that clinic in the amount of $34,000.  A's receptionist takes payment for my work at point of service (credit cards, cash, personal checks) those payments go directly into A's account.  While working at A, I am also billing insurance companies (Geico, Blue Cross Blue Shield, etc). 

 

When payments come in from these insurance companies, they are in J's name, using J's tax id number. These checks, made out to J, go directly into A's account as well.  "A" combines the point of service payments and J's insurance payments, and then A takes a 35% commission or "rent" from that combination,  writing J a check monthly.

 

The insurance companies (Geico, Blue cross Blue Shield, etc..) issue J 1099-misc's as well. These 1099's are in J's name, using J's tax id number.  They total $11,000.

 

I am wondering the best way to account for the $11,000 never put into J's hands or account, and is included in the $34,000 that J earned from A.  In the past I have used Schedule C, and itemized deductions and would like to do that again.

 

My concern is that it will appear to the IRS that I have made 34,000 + 11,000 when reviewing my 1099's.  Any ideas on this puzzle, and how to best handle it are greatly appreciated. 

 

Thank you.

 

J

 

 

 

 

Associate
Posts: 1
Registered: ‎12-13-2016

Re: 1099 puzzle

If I was collecting monies from companies under my tax ID # I would not be giving it to another companies account. You should keep the monies from the companies or have the companies issue the monies to the tax ID of the company that you are depositing the monies to. If you get 2 1099 it would appear to the IRS that you are making 45,000 dollars. In other words if it is not going into my pocket do not 1099 me.