Can husband pay me salary for p/t secretary work and give me 1099 at year's end? And I pay tax & S.S. then?

Husband owns a repair shop. I'm p/t secretary. In 20 years have never drawn salary. Can he pay me salary and give me a 1099 at end of year and I pay tax & S.S. then? We have given 1099 forms to contract laborers but I don't know if I can do it for me. I'd rather do 1099 than the other, since we have no other employees and so I don't have to do payroll taxes, etc. My husband is president of the corporation and I'm listed as secretary. We are small "mom & pop" shop. We file at end of year. The last several years we have not made enough to pay taxes.....we have just paid social security on him. Very small income! Your advice would be appreciated. - Is this your question? Add additional information
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Answers (1)

Mace Abdullah

Mace Abdullah

Contributor Level 3
Sounds like you run the repair shop as a sole proprietorship, i.e. file a Schedule C on your Form 1040, federally. If that is the case, then there is no requirement that you be issued a 1099, as the income would just end up back in the same tax return. I'm not in GA, so I'm not sure if you are getting any credit for the self-employment taxes you are paying into the Social Security. In any event, a 1099 for you would be inappropriate as you are not an independent contractor and would be viewed by the IRS as an "employee" not a non-employee. Thus, issuing you a W-2, with taxes already withheld might be a better approach, particularly if you are trying to build a Social Security record of your own and GA law results in the self-employment taxes being paid not being credited to your Social Security account, in part.
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