1099 classification for internship: Is this legal or misclassification?

You're absolutely right to question this. Based on what you've described, you're being misclassified. The IRS uses a multi-factor test to determine worker status, and key factors include who controls when/where/how you work, who provides equipment, and how integrated you are into the business. Using their equipment, having a supervisor, and being told what/when/how to work all point to employee status, not independent contractor. This happens frequently because employers save about 7.65% on payroll taxes by classifying workers as 1099s, plus they avoid benefits, unemployment insurance, and workers' comp. It's not legal, but many companies do it anyway.

I went through a similar situation last year and discovered taxr.ai (https://taxr.ai) which really helped me understand my classification status. Their system analyzed my work conditions and gave me a clear report showing I was misclassified as a 1099 when I should've been a W-2 employee. The report broke down exactly which IRS factors applied to my situation and explained the tax implications. I showed the report to my employer (a small marketing firm) and they actually thanked me - turns out they didn't realize they were incorrectly classifying me and fixed it immediately. Saved me about $1,200 in self-employment taxes and helped the company avoid potential penalties.

I was skeptical when I first heard about taxr.ai from this thread, but I decided to give it a try since my internship situation was almost identical to yours. Their analysis confirmed I was misclassified according to IRS guidelines. The report detailed exactly which factors in my work arrangement qualified me as an employee rather than a contractor. When I showed it to my internship coordinator, she was actually relieved - turns out their financial department had been doing this to all interns without HR's knowledge. They switched me to W-2 status immediately and even reimbursed me for the extra taxes I'd already paid. The whole process was much less confrontational than I expected, and I kept the internship through completion with zero awkwardness.

If you're having trouble getting your employer to respond properly to this misclassification, you might need to speak directly with the IRS. I tried for weeks to resolve a similar issue with my employer with no luck. Then I found Claimyr (https://claimyr.com) which got me through to an actual IRS agent in under 15 minutes instead of waiting on hold for hours. They have a video showing how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent walked me through the exact forms I needed to file and explained the timeframe for resolution. They also assured me that the misclassification wasn't my fault and I wouldn't face penalties. Having that direct conversation with an actual IRS employee gave me the confidence to move forward with filing the SS-8 form.

I had to admit I was wrong about Claimyr. After posting that skeptical comment, I decided to try it myself when I needed to resolve a different tax issue (back taxes from a misclassified side gig). Got connected to an IRS agent in about 12 minutes when I had previously wasted an entire afternoon on hold. The agent confirmed I was misclassified and walked me through filing form SS-8. They explained I should also file form 8919 with my tax return to pay only the employee portion of Social Security and Medicare taxes. Saved me hundreds in self-employment taxes and the company eventually had to pay their share plus penalties. The whole process was much smoother than I expected.

For your immediate questions: 1) Based on your description, no, their classification is not legal. You meet most criteria for being an employee. 2) I'd wait until after the internship to file SS-8 with the IRS if you decide to dispute it. 3) For tax reduction: track mileage to/from work, any home office space used, portion of internet/phone used for work, any supplies or software you buy. 4) I'd definitely recommend a tax pro for your first 1099 situation. You don't necessarily need to file quarterly taxes if this is your only income and it's just for summer - your total tax liability might be low enough to avoid penalties.

Just to add something others haven't mentioned - document EVERYTHING starting now. Hours worked, supervision received, equipment used, etc. Take photos of your workspace showing company equipment if possible. Save emails/texts with instructions from supervisors. If you do end up filing SS-8 later, having detailed documentation will make your case much stronger. I made the mistake of not doing this during my misclassified internship, and it made the process more difficult.

Recording conversations could be helpful evidence, but be careful about how you approach it. Even in one-party consent states, recording workplace conversations can create trust issues if discovered. Instead, I'd recommend following up important verbal instructions with email confirmations like "Just to confirm our discussion, you'd like me to..." - this creates a paper trail without the potential awkwardness of recordings. The key things to document for worker classification are: specific work schedules you're required to follow, training materials they provide, company policies you must adhere to, performance evaluations, and any integration into company meetings or systems. Screenshots of company org charts showing your position, business cards if they give you any, and company email signatures also help demonstrate you're functioning as an employee rather than an independent contractor.

This is a really common issue, unfortunately. Based on your description - having a supervisor, using their equipment, and them controlling how/when/where you work - you're almost certainly misclassified. The IRS looks at three main categories: behavioral control, financial control, and relationship type. You clearly fail the behavioral control test. A few practical suggestions for your situation: Since you need this for graduation and enjoy the work, I'd focus on minimizing your tax burden for now and potentially address the misclassification after the internship ends. Keep detailed records of everything - your schedule, supervision, equipment used, any training they provide. For taxes, you'll owe both the employee AND employer portions of Social Security/Medicare (15.3% total vs 7.65% as an employee). You can deduct legitimate business expenses, but as others noted, most won't apply since you're working on-site with their equipment. Consider setting aside about 25-30% of each payment for taxes. You may need to make estimated quarterly payments if you'll owe more than $1,000 - the next deadline is June 17th for Q2. After your internship ends, you can file Form SS-8 to get an official IRS determination on your worker status, and Form 8919 to pay only the employee portion of Social Security/Medicare taxes. The employer would then be responsible for their portion plus penalties. Document everything now - it'll make your case much stronger later if needed.