Form 8919
Published on November 15, 2024
by Jeff Patterson
Jeff Patterson is an American living in Scotland and joined the team at Expat Tax Online after experiencing the complexities of living abroad with a family.
Table of Contents
What do I do if I was misclassified as a contractor?
If you think you were misclassified as an independent contractor instead of an employee, you can use Form 8919 to correct this on your taxes.
This form helps you report Social Security and Medicare taxes as if you were an employee, which ensures that your earnings count toward Social Security benefits.
Misclassification can happen if you receive a 1099-NEC instead of a W-2 and if payroll taxes weren’t withheld from your pay.
How do you know if you should be classified as an employee?
The IRS determines employee status based on factors such as employer control over your work. Employees often have set hours and specific work procedures, whereas independent contractors usually decide how, when, and where they work.
If you received both a W-2 and 1099-NEC from the same employer in one year, or if your work duties are tightly controlled by your employer, these could be signs that you’re an employee rather than a contractor.
In cases of uncertainty, you can submit IRS Form SS-8 to request a formal review of your work status.
What does the “Reason Code” on Form 8919 indicate?
When you fill out Form 8919, you’ll see a “Reason Code” section, which identifies why you believe you were misclassified. Each code corresponds to a different situation, such as previously receiving a W-2 from your employer or having the IRS determine your employee status in the past.
What are the effects of filing Form 8919?
Form 8919 allows you to pay Social Security and Medicare taxes as an employee, which means your income will be accurately recorded for future Social Security benefits.
It calculates these taxes based on the income your employer reported and adds them to the “Other Taxes” section on your Form 1040.
Should you get help with Form 8919?
Filing Form 8919 can help correct your tax situation, but the process might be complex if it’s your first time dealing with misclassification issues.
A tax professional can provide guidance to ensure that Form 8919 is correctly filled out, especially if you’re not sure about the best way to explain your classification concerns to the IRS.
What could happen if you don’t file Form 8919 when required?
Failing to file Form 8919 when it’s needed can lead to a series of IRS penalties and added interest on unpaid Social Security and Medicare taxes. By skipping this form, you may be underpaying required taxes, which the IRS takes seriously.
Over time, these penalties grow with interest. Additionally, the IRS might assess further fines for inaccurate reporting. The longer these taxes and penalties go unpaid, the higher the costs become.
Beyond the immediate penalties, not filing Form 8919 also impacts your Social Security benefits. If your Social Security contributions aren’t properly recorded due to an incorrect classification, your earnings record may not accurately reflect your lifetime income.
Since Social Security credits are essential for future benefits, filing Form 8919 ensures that your income is correctly credited, maintaining your eligibility for benefits like retirement and disability.
Can you use Form 8919 even if your employer paid some taxes?
Yes, you may still need to file Form 8919 even if your employer has already paid some taxes. Sometimes, an employer may report only a part of your income or may categorize you as an independent contractor instead of an employee.
This partial reporting often means they may have paid some, but not all, of the necessary taxes on your income. Form 8919 helps address this by allowing you to report Social Security and Medicare taxes for all qualifying income that should have been treated as employee wages.
Will Form 8919 affect future job prospects?
Filing Form 8919 is unlikely to affect future employment opportunities.
This form is designed to resolve Social Security and Medicare tax matters, not to influence employment records. The IRS may contact your employer to confirm information, but it won’t involve itself in employment issues or disputes.
If you’re concerned about potential effects on your job or professional relationships, consulting a tax professional can offer guidance. They can help ensure the process goes smoothly, providing advice specific to your situation.
How can you get help completing Form 8919?
If you’re uncertain about filing Form 8919 or need guidance, several resources are available to assist. The IRS offers detailed instructions on their website, and you can contact them directly with specific questions.
Alternatively, consulting a tax professional—such as a certified public accountant (CPA) or enrolled agent—can make the process much easier. Tax experts can help determine if filing is necessary for your situation, ensure the form is filled out correctly, and provide support in understanding your classification and tax obligations.
