Expert: Shirley McAllister, CPP, PHR - 4/9/2011

Question
As a contractor, I received a 1099-MISC. The company withheld social security and Medicare amounts which were not reported on the 1099-MISC, since there are no boxes for reporting these items.  How do I report the SS and Medicare withholding on my Federal and State tax returns?

Answer
The company should not have withheld social security and medicare on a 1099. If you are a contractor than you are responsible for paying the social security and medicare and they do not withhold it.

Social security and medicare are only withheld on a W-2 form for employees.

Being an independent contractor you would have owed self employment taxes on the amount earned on the 1099.

You will have to figure out on your form how much self employment tax you owe and you should be able to use the amount deducted as part of the amount you owe for self employment taxes.

You will need a tax professional or a CPA to help with this.

Shirley