IRS Form 8919
Published on November 20, 2024
by Aya Takriti, EA
Aya Takriti, an IRS Enrolled Agent with 9 years of expat tax experience, specializes in US tax preparation, tax planning and tax advice for US citizens and Green Card holders living and working in the Middle East. Aya speaks fluent Arabic and English and the odd word of German and Spanish if you catch her on a good day.
Table of Contents
My employer misclassified me as an independent contractor instead of an employee. What should I do?
You’d need to file Form 8919 if you think your employer wrongly classified you as an independent contractor when you believe you’re an employee. Some employers may make this mistake, sometimes to avoid paying taxes that are typically withheld for employees.
Filing Form 8919 allows you to pay Social Security and Medicare taxes on your earnings, which helps build your Social Security record for future benefits like retirement or disability.
Situations where this might apply include cases where your employer issues you a 1099-NEC form (used for contractors) rather than a W-2 (for employees) or if they aren’t withholding payroll taxes from your pay.
Who should use Form 8919?
One example is if you received a W-2 and a 1099-MISC from your employer in the same tax year.
The IRS has specific guidelines for who qualifies as an employee, mainly based on how much control the employer has over how the work is done. Generally, employees have set hours, specific methods of work assigned, and are closely managed, whereas independent contractors usually decide how, when, and where they work.
If you suspect you should be an employee, you may also have to file IRS Form SS-8 to have the IRS officially decide on your work status. Form 8919 lets you make sure that you’re covered under Social Security for any income that should have been taxed as employee earnings.
What is the ‘Reason Code’ on Form 8919?
On Form 8919, the “Reason Code” is a specific code that tells the IRS why you believe you were incorrectly classified as an independent contractor instead of an employee. Each code represents a different reason.
For example, if the IRS previously ruled you were an employee or if your employer gave you a W-2 in a previous year but is now treating you as a contractor, there is a reason code for each of these situations.
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How does Form 8919 affect my tax filing?
When you fill out Form 8919, it affects your taxes by allowing you to report Social Security and Medicare taxes as if you were an employee, even if your employer classified you otherwise. This way, the correct tax amounts get added to your Social Security record, which helps ensure you don’t miss out on future benefits.
On your tax return, Form 8919 shows the Social Security and Medicare taxes calculated on your earnings. You file it along with your regular tax return (Form 1040) and add it to the “Other Taxes” section.
What are the consequences of not filing Form 8919 when required?
First, the IRS may impose penalties and interest on any unpaid Social Security and Medicare taxes. This happens because, by not filing, you effectively underpay these required taxes.
The IRS can assess additional fines for failing to report accurately, and these penalties increase over time with interest if they remain unpaid.
Beyond penalties, not filing can also impact your future Social Security benefits. Social Security credits are earned through contributions to the Social Security system, which usually come from wages where taxes are properly withheld.
When these aren’t recorded correctly because of a missing Form 8919, it can reduce your Social Security earnings record, possibly lowering your benefits in the future.
Is Form 8919 required if my employer paid some taxes?
Form 8919 may still be necessary even if your employer has paid some taxes.
Sometimes, an employer might report only a portion of your earnings or misclassify you as a contractor. This means they could have paid some taxes, but not all of what’s required under employee status.
Form 8919 helps correct these records so that both Social Security and Medicare taxes are properly allocated on all qualifying earnings.
Does Form 8919 affect future employment?
Filing Form 8919 usually doesn’t have a direct impact on your current or future employment opportunities. This form is specifically for cases where you believe you’ve been incorrectly classified as an independent contractor rather than an employee, and it helps you correct your Social Security and Medicare tax records.
The IRS may contact your employer to verify the information, but they won’t get involved in employment matters or disputes between you and the employer.
If you’re worried about how this might affect your relationship with your employer, you could talk to a tax professional. They can give you guidance specific to your situation and help you understand any potential issues that may arise.
Where can I get help with Form 8919?
If you need help filling out Form 8919, there are several resources available. The IRS website provides detailed instructions for this form, and you can call the IRS directly if you have specific questions about filling it out.
Another option is to speak with a tax professional, like a CPA or an enrolled agent, who can guide you through the form and help you determine if filing it is the best step.
If you’re not sure about your employment status or how to approach your taxes, an expert can help with any questions.
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