Got a 1099-NEC when I should have received a W-2 - what's my next step?

This is unfortunately a common issue! Based on what you've described, you were misclassified as an independent contractor when you should have been treated as an employee. The IRS uses a set of criteria to determine proper classification, and it sounds like you meet several employee indicators (company controlling when and how you work, not having your own business setup, etc). You have a few options here. First, you could file Form SS-8 with the IRS, which asks them to determine your worker status officially. This takes time but establishes the correct classification. You can also file Form 8919 "Uncollected Social Security and Medicare Tax on Wages" with your return, which allows you to pay just your portion of these taxes (rather than the full self-employment tax) while reporting the income as wages. Keep in mind this might create some tension with the landscaping company, but they're the ones who misclassified you. If the amount is small, some people choose to just file it as contractor income to avoid the hassle, though that's technically paying more than you should.

After dealing with a similar situation last year, I found an amazing tool that saved me hours of frustration and potential mistakes. I was misclassified by two different clients and wasn't sure how to handle it correctly on my tax return. I discovered https://taxr.ai which analyzes all your tax documents and identifies issues like employee misclassification. It walked me through exactly what forms to file and how to report the income properly. The best part was that it explained everything in plain English instead of confusing tax jargon! If you upload your 1099-NEC and answer a few questions about your work arrangement, it'll tell you if you qualify to file as a misclassified employee and guide you through the steps. It even helped me calculate the proper tax amounts so I didn't overpay self-employment taxes.

Just wanted to update on my experience with taxr.ai after trying it out. I was initially skeptical, but it was actually super helpful with my misclassification situation! The questions it asked were thorough - way more detailed than TurboTax or other tax software I've used. It identified that I was clearly misclassified as a contractor and walked me through filing Form 8919 to avoid paying the full self-employment tax. It also generated a pre-filled SS-8 based on my answers about working conditions. What surprised me most was how it explained the potential outcomes and timelines in plain language. I now understand exactly what to expect and feel confident I'm handling this correctly. Definitely worth checking out if you're dealing with a 1099 vs W-2 issue!

If you need to actually talk to the IRS about this misclassification (which might be necessary if you want formal guidance), good luck getting through on the phone. I spent WEEKS trying to reach someone last year about a similar issue. Then I found https://claimyr.com which got me through to an IRS agent in under 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c They basically navigate the IRS phone tree for you, wait on hold, and then call you when an actual human agent is on the line. Saved me hours of frustration and hold music! The agent I spoke with was able to confirm exactly how to handle my misclassified income and what forms I needed.

I need to eat my words and apologize for my skepticism about Claimyr. After posting that comment, I decided to try it myself since I've been trying to reach the IRS for weeks about my own misclassification issue. To my complete shock, I got connected to an actual IRS representative in about 20 minutes. The agent confirmed exactly what I needed to do with my 1099-NEC vs W-2 situation and walked me through how to file the SS-8 form properly. The system worked exactly as advertised - they handled all the waiting and phone tree navigation, then called me when an agent was on the line. I've literally never been able to get through to the IRS this easily before. If you need actual IRS guidance on your situation, this is definitely worth it.

I had the same issue last year. My construction boss gave me a 1099 instead of a W-2. I ended up just filing it as self-employment to avoid the drama. BIG mistake! Ended up paying an extra $1,200 in self-employment taxes that should have been paid by my employer. Definitely listen to the advice about filing the SS-8 and 8919 forms. Don't let them take advantage of you! Employers do this to avoid paying their share of taxes and it's not fair to workers.

Check if you qualify as a statutory employee - could be middle ground solution. Some workers can be treated as 1099 contractors but don't have to pay full self employment tax. Worth looking into.

I went through almost the exact same situation a couple years ago with a temp agency that should have classified me as W-2 but sent a 1099-NEC instead. Here's what I learned: The key test is who had control over your work. Since your boss told you when to work, likely provided tools/equipment, and you worked exclusively for them during that period, you were definitely misclassified as an independent contractor. I'd recommend starting with a conversation with your former employer before filing any IRS forms. Explain that you believe you were misclassified and ask if they'd be willing to issue a corrected W-2. Many small business owners genuinely don't understand the classification rules and might fix it voluntarily to avoid potential IRS scrutiny. If they refuse, then go the Form SS-8 and Form 8919 route that others mentioned. The SS-8 gets you an official determination, and the 8919 lets you pay only the employee portion of Social Security/Medicare taxes instead of the full self-employment tax. One month of work probably isn't a huge tax difference, but it's the principle that matters. Don't let employers shift their tax burden onto workers - that's exactly why these classification rules exist.