Tax Planning/Tax question


My friend and I did a consulting job for a local nonprofit organization and made appx $5000. The organization will 1099 under my friends social sec # because we did not have a business tax is #.  Is there a way that we can split the tax burden by half? As it is now she will receive the 1099.  

Also appx how much will we have to pay in taxes on $5000 ($2500 each)? Both of us are in the 25% tax bracket.

Thank you for your assistance in this matter.

Candice, you will need to fill out a Schedule C-EZ.  Your friend will need to issue a 1099-MISC to you for the $2500.  That means each of you will show $2500 income.  Your tax bracket of 25% is only on a bracketed basis.  But if all your existing income is at 25%, your tax will be $625.

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As an Enrolled Agent, I am fully capable of providing tax advice as it relates to personal and business income taxes. Enrolled Agents are the only Federally licensed tax practitioners and are admitted to practice before all administrative functions of the IRS. My specialty is working with small business owners who file Schedule "C" and helping them to structure their business in such a way as to maximize as many tax advantages as possible. I also enjoy working with individuals who have both routine as well as complex tax situations. I prefer to concentrate on individuals and small business tax planning.


I have a 25 year background in financial services including tax, bookkeeping, insurance, real estate and securities. I was previously the Chief Financial Officer of a local and national franchise organization. I am currently semi-retired, but used to own (in partnership with another EA) an individual and small business financial engineering firm where I work with nearly 2,500 individuals and small business owners in nearly every state and almost every continent, assisting them in all aspects of their tax and financial well-being. I have prepared or reviewed more than 8,000 tax returns in my career.

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Enrolled Agent, Admitted to Practice Before the IRS, Accredited Tax Preparer, Fellow of National Tax Practice Institute, Certified QuickBooks ProAdvisor (1999-2011), Sleeter Group Certified QuickBooks Consultant, Life & Disability Insurance Agent License (California, Texas, Maine), Real Estate Agent License (California); Many years of continuing education in all these fields.

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