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agrech
LIF Infant
Member since 10/05 128 total posts
Name:
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1099 Tax question
Hey girls, hoping that one of you an shed soem light for me. My husband ahd recieved a bonus that went untaxed, now his company called him and told him that they were sending us a 1099 so that it can show it needs to be taxed. Does that mean when we file we will owe tax on that. IMO the company should pay it, they messed up
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Posted 3/13/06 1:50 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
MsMa
Momma's Boy ?
Member since 5/05 1453 total posts
Name:
Meri
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Re: 1099 Tax question
Hi as far as I know yes you will have to pay taxes on that bonus.
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| Posted 3/13/06 1:51 PM |
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CaseyGirl
Mommy to 3 Boys :)
Member since 5/05 19978 total posts
Name:
Jen - counting my blessings...
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Re: 1099 Tax question
Posted by MsMa
Hi as far as I know yes you will have to pay taxes on that bonus.
I agree, doesn't matter if it was their mistake or not....sorry 
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| Posted 3/13/06 1:53 PM |
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Christine
2nd verse same as the 1st
Member since 5/05 15287 total posts
Name:
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Re: 1099 Tax question
Unfortunately, yes. Income tax will be due on this income and it's the responsibility of the recipient to pay it. It would have been nice if the company mentioned this is how it would be handled when they issued the bonus. They also should have issued the 1099 in January.
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| Posted 3/13/06 1:57 PM |
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Shelly
She's 7!!!
Member since 8/05 14624 total posts
Name:
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Re: 1099 Tax question
They are right. They did mess up, but your DH took home more of his bonus than he was supposed to. So that is why you guys have to pay. Sorry.
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| Posted 3/13/06 1:57 PM |
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agrech
LIF Infant
Member since 10/05 128 total posts
Name:
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Re: 1099 Tax question
Posted by Christine
Unfortunately, yes. Income tax will be due on this income and it's the responsibility of the recipient to pay it. It would have been nice if the company mentioned this is how it would be handled when they issued the bonus. They also should have issued the 1099 in January.
That is what I thought, of course it was a mid year thing that was meant to keep him staying with the company and now we here sit SH***. Im so upset we really needed the money from our return.
Thanks ladies
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| Posted 3/13/06 1:58 PM |
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PiyoPika566
talk to the hand
Member since 5/05 1436 total posts
Name:
Stephanie
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Re: 1099 Tax question
unfortunately, you have to pay taxes on your bonus... and bonuses are tax more heavily than usually....
I had 40% taken out of my bonus for tax! 
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| Posted 3/13/06 1:59 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: 1099 Tax question
Posted by agrech
Hey girls, hoping that one of you an shed soem light for me. My husband ahd recieved a bonus that went untaxed, now his company called him and told him that they were sending us a 1099 so that it can show it needs to be taxed. Does that mean when we file we will owe tax on that. IMO the company should pay it, they messed up
You probably should have looked at the paystub of your bonus check to see if they took out taxes. If nothing was mentioned... then they didnt take taxes out and you should have put aside some of that cash for the taxes.
Asking them to pay for this is like asking them to give you an additional 30% more bonus than they already did. Not really fair to them.
And as far as bonus money being taxed more... they only tax it more so you don't end up oweing money in the end. In reality... bonus money is taxed at the same way salary pay is. You only pay taxes on what tax bracket you fall in at the end of the year.
So even if they take out 40% tax of your bonus check... most likely won't be in a 40% tax bracket and you will get back whatever is owed to you at tax time.
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| Posted 3/13/06 2:50 PM |
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PiyoPika566
talk to the hand
Member since 5/05 1436 total posts
Name:
Stephanie
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Re: 1099 Tax question
Posted by DjPiLL
And as far as bonus money being taxed more... they only tax it more so you don't end up oweing money in the end. In reality... bonus money is taxed at the same way salary pay is. You only pay taxes on what tax bracket you fall in at the end of the year.
So even if they take out 40% tax of your bonus check... most likely won't be in a 40% tax bracket and you will get back whatever is owed to you at tax time.
Really? Last yr I had to supplement $350 to the IRS at tax time... even after all that $$ they took from my bonus... grrrrr
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| Posted 3/13/06 2:53 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: 1099 Tax question
Posted by PiyoPika566
Really? Last yr I had to supplement $350 to the IRS at tax time... even after all that $$ they took from my bonus... grrrrr
It shouldn't make a difference. Bonus money just adds on to your total money earned at the end of the year. You are taxed in one bracket at the end.
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| Posted 3/13/06 3:02 PM |
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PiyoPika566
talk to the hand
Member since 5/05 1436 total posts
Name:
Stephanie
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Re: 1099 Tax question
Posted by DjPiLL
Posted by PiyoPika566
Really? Last yr I had to supplement $350 to the IRS at tax time... even after all that $$ they took from my bonus... grrrrr
It shouldn't make a difference. Bonus money just adds on to your total money earned at the end of the year. You are taxed in one bracket at the end.
well, I made more this past yr and I am getting a nice chunk back compare to 2004 and had to pay $350.. so I really don't understand.... I'll never get this tax cr*p
ETA: sorry to hijack the original post! 
Message edited 3/13/2006 3:07:35 PM.
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| Posted 3/13/06 3:07 PM |
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