will my husband have to use his uncles name for his self employment taxes ?
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Question: will my husband have to use his uncles name for his self employment taxes ?
my husband acts as a personal aid 2 his elderly uncle and wants 2 claim what he makes as self employment but his uncle said no if he has to use his name on the tax forms so my question is that if he files will he have 2 use his uncles name on his tax forms?
my husband is willing to pay any taxes owed on it he just wants to file for self employed
he wants them 2 take the taxes out on him when he files
The answer in the following:
Answer by Dances with Aardvarks
His uncle doesn’t have a say in the matter. If your husband works in his uncle’s home, he’s a household employee and the uncle is required by law to withhold Social Security and Medicare taxes and pay payroll taxes.
The IRS may not question it if he reports the income on Schedule C or C-EZ and pays all of the taxes due. However if there’s an audit and they figure out that it’s a household employee situation they WILL go after the uncle for the unpaid payroll taxes due. Since this would include Public Trust Fund taxes, the penalty for the uncle is 100% of the unpaid tax so the IRS has a significant incentive to go after him for this.
Answer by ohh_herro
No, you don’t have to put down any names for self-employment income.
Answer by Searcher
The question would be, does his uncle pay your husband’s federal, state, local taxes as well as half of his FICA taxes? If not, then it sounds like he is in violation of employer laws if he is considering him an employee. In addition, the uncle needs to get a FEIN (federal employment identification number) and the uncle needs to pay taxes.
If the uncle is NOT handling these issues, then he should treat your husband as an independent contractor and issue him a 1099. That will mean that he has to pay quarterly taxes.
If you go to the IRS website, you will find the suitable forms, and there may be some specific information relating to these forms.
Answer by craZykat
I don’t think he has to put down his uncles name.
Answer by AB
Yes his uncle’s name will have to be on the 1099 that is given to your husband. Your husband might owe penalties if he made enough and didn’t make any estimated payments for this income. Just FYI.
Answer by Judy1
No, if your husband files the income as self employment he won’t show where he got the income. If he is working solely or mainly in his uncle’s home, he should probably be paid as a household employee, not as self employment, but that’s another question.
Your husband will show the income and any associated allowable expenses on schedule C-EZ, and file a schedule SE to calculate self employment tax (social security and medicare) that he owes.
If the total tax owed on the tax return filing is over 00, he should be making quarterly estimated payments to the IRS using form 1040ES, and likely to state and/or local tax authorities also.
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