Minneapolis, MN asked in Tax Law and Identity Theft for Arkansas

Q: My sister did Instacart under my name after they kicked her off it. Instacart drivers are considered independent

contractors. I just received a 1099 for her earnings (approx $17,000) this additional income, put me over $50,000, disqualified me for the EIC, the addt'l CTC, reduced my CTC & will reduce my tax return by about $7,000. Is there anything she or I can do to get the 1099 transferred to her, without her getting in legal trouble? She just thought she was getting over on Instacart for disabling her account. She wasn't even thinking bout the IRS or taxes. What can we do? Edit: It's not bout the stimulus. I'm getting that. She's getting that. EVERYBODY is getting that. But I'm a single mom & head of household with 3 minor dependents & I DO pay my taxes. I don't commit fraud. I didn't realize she was making a taxable amount of money. I didn't know if it was taxable income, or that if it was, that they weren't holding anything out. I just don't want to get her in trouble. But I don't want to pay for her screw up either. Can she not just tell them & pay the taxes out of it?

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1 Lawyer Answer

A: Based on your story, IMO you and your sister have committed a fraudulent act--and are about to make it worse. Advice: Do not make it worse by involving the IRS. If you are unhappy that your sister got $17,000 tax free while leaving you holding the bag and making you pay an additional $7,000 to the IRS, and making you miss out on the stimulus gifts then you need to sue her.

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