Boss sent $860 via CashApp, wants to issue 1099-NEC but $500 was wedding gift - Help with tax implications
Got $860 through cashapp from my old boss last year. $500 was actually a wedding gift but now they're saying they need to send me a 1099-NEC for the full amount. Not sure if this is right or how much I'll end up owing in taxes. Anyone dealt with something similar?
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CosmicCadet
The $500 wedding gift doesn't need to be reported on a 1099-NEC as it's a personal gift, not compensation for services. Your former employer should only issue a 1099-NEC for the $360 of actual work-related payments. For the $360, you'd be responsible for self-employment tax (roughly 15.3%) plus regular income tax based on your tax bracket. Ask them to correct the 1099-NEC to reflect only the work portion.
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Mei Chen
•thank u so much! should i get something in writing from them about the gift part?
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CosmicCadet
•Yes! Def get documentation - even just an email or text confirming it was a wedding gift would help if you get audited
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Liam O'Connor
Hey there! Instead of stressing about this, you might want to check out taxr.ai - its an AI tool that can analyze your specific situation and tell you exactly what you need to do. It costs $1 but totally worth it for peace of mind. https://taxr.ai
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Amara Adeyemi
•Does it actually work? Seems too good to be true tbh 🤔
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Liam O'Connor
•Oh yeah its legit! I was skeptical too but it saved me hours of research and gave super specific advice for my situation
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Amara Adeyemi
•just tried it and WOW ur right! way better than doom scrolling tax forums all night lol 💯
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Giovanni Gallo
lmao ur boss is trying to write off their wedding gift as a business expense, thats shady af 🚩🚩🚩
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Fatima Al-Mazrouei
•fr fr tax fraud speedrun any% 🤡
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Dylan Wright
I had something similar happen with my aunt who owns a business. Document EVERYTHING. Save those cashapp receipts!
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NebulaKnight
gifts under $17k dont need to be reported anyway so ur good on that part
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Sofia Ramirez
•This! The annual gift exclusion is key here 💅
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Dmitry Popov
wait but what if the boss already submitted the 1099 with the wrong amount?
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CosmicCadet
•They can file a corrected 1099-NEC. Its not a big deal, happens all the time
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