Family member wants me to pay taxes on money they gave me… do I actually have to?

I work for a family member doing odd jobs, and they’ve been paying me pretty well. Usually, that’s the end of it. They send me the money (USD) straight to my bank account. But now, they’re telling me I need to sign a 1099-NEC form, and it’s making me wonder if I really have to pay taxes on this. They’ve already sent a lot of money this year.

I also made the mistake of giving them my SSN because I thought I had to pay taxes, but now I’m doubting if that’s true. Are they trying to get more money from me or cover themselves? Or is this actually something I have to report?

NEW EDIT: I’m very behind on taxes… I haven’t filed for this year or last, since my official income is so low. They sent this 1099 back in May. I want to know: since they may have already filed their taxes, is it too late for me to say I’m not paying taxes on this money? Or would that create a huge mess? I saw somewhere that money given for “personal work” (like lawn mowing) doesn’t need to be reported as income. I’m just really lost here, so any advice is appreciated.

If you’re doing work and getting paid, you have to pay taxes on that income. It’s pretty straightforward.

Harper said:
If you’re doing work and getting paid, you have to pay taxes on that income. It’s pretty straightforward.

So wait… is he refusing to pay taxes, or is he just confused about who pays what here?

Anything you earn for work is taxable, regardless of whether you get a 1099.

Lennon said:
Anything you earn for work is taxable, regardless of whether you get a 1099.

Sounds like they’re trying to classify it as a business expense if they’re issuing a 1099.

You do the work and get paid, so yeah, it’s taxable.

>Are they trying to just sneak more money out of me

Unlikely. They might be listing it as an expense if they’re sending you a 1099, but personal jobs don’t usually qualify for that. The big thing is that this money is income, so it’s taxable for you.

Check if the 1099 says what year it’s for, and make sure they actually sent it to the IRS. If they sent it in May, that’s pretty late, and they might not know what they’re doing.

>they are trying to make me sign a 1099 NEC

You don’t need to sign anything. They create the form, send it to you, and also file it with the IRS. You just report the income.

Sounds like you’re confusing a gift (like a birthday present) with payment for a job.

You pay income tax on what you earned. The 1099 is there to document it. This doesn’t affect the family member—they’re not paying your taxes; they’re just reporting what they paid you.

Since you did the work and received payment, that’s income you technically need to report, whether or not you get a tax form for it. Ignoring it can come with penalties.

You’re not paying their taxes; you’re paying your taxes. If your total income is below $12k, you might not owe much, if anything, but it’s still counted as income.

Nico said:
You’re not paying their taxes; you’re paying your taxes. If your total income is below $12k, you might not owe much, if anything, but it’s still counted as income.

If you made over $400 from self-employment, even with no income tax, you still have to pay self-employment taxes at almost 15%. If you had expenses for your work, like tools or travel, you could use those as deductions.

@Koa
Good point… that self-employment tax can be easy to overlook.

If they have your SSN and you did work for them, it makes sense they’d issue a 1099-NEC. You don’t need to sign it, just confirm the amount and tax year. You can declare it as income on Schedule C and possibly deduct things like gas, tools, etc. Nothing shady if everything matches up.

>I do various jobs […] and they send me money in exchange.

That’s not a gift. That’s income.

>Are they trying to just sneak more money out of me […] I don’t plan to pay her taxes

You’re only paying tax to the government on your income. The family member isn’t taking anything from you by issuing the 1099.

>money sent for personal gigs (mowing lawns, things of that nature) does not require you to report it.

There’s a minimum income threshold for taxes, but if you’re making a decent amount, it’s likely taxable income.

She’s deducting your pay as an expense, which is why you’re getting a 1099. Are you sure you didn’t agree this would be under the table?

Honestly, I hope someone finally takes down the IRS… Musk and Ron Paul, are you listening?

Riley said:
Honestly, I hope someone finally takes down the IRS… Musk and Ron Paul, are you listening?

Nice! Hoping for the day someone steps in to deal with all these taxes.