You are here:

Tax Planning/Tax question- consulting income


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 I'd #.  Is there a way that we can split the tax burden? 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.

Your friend will have to pay all the tax on the $5k. The only way to split is for you to pay her half based on her income and tax return (not very clean). You could also ask the non-profit to give you corrected 1099's for each of your social security numbers. It's impossible to estimate the tax on the $5k, it depends on your friends taxable income. Unless this is a unique, one time event, I would ask the non-profit to give corrected 1099's - otherwise you don't get to deduct any business expenses against that income (gas, lunches, supplies, etc.) So, assuming a one time event, you could take a program like TurboTax and plug in/unplug the $5k and see what her tax exposure is and split that.

Tax Planning

All Answers

Answers by Expert:

Ask Experts


Richard S


My expertise is in collecting past due taxes and tax returns. While at the IRS I worked on wage and bank levies, liens, Offer in Compromise, late filing and payment agreements every day. I spoke with over 20,000 people concerning their issues while I worked there (just retired).


Ten years working for the the IRS in Collections and tax return review. Worked with over 20,000 people on their IRS issues. Explained their options and usually worked out a solution while they were on the phone.

Masters Degree from Iowa State in Ames.

©2017 All rights reserved.