Form 1099 Misc

Income Trouble with a Bad Credit Auto Loan

One reason many bad credit customers end up at a tote the note dealer is that they’re unable to get approved for a bad credit auto loan because they either don’t receive a W-2 at the end of the year or the W-2 they receive doesn’t reflect all their income.

If the W-2 doesn’t show their entire income it’s usually because they’re paid under the table either in cash or with a non-payroll check with no money taken out for social security, Medicare or income taxes.

Some employees don’t receive a W-2. If you are an independent contractor, you won’t receive a W-2 but you should still receive a form 1099-MISC. You then report this income, less any expenses, on the Schedule C of your 1040 income tax form.

But even if you are paid in either of these two ways, you are still required to file a tax return and report this income. This is especially important if you have poor credit. You might have bank records that show you’ve received this money, but if it isn’t there on a tax return, you have no proof.

Bad credit lenders also have minimum income levels. If you are paid in cash or as an independent contractor, they’ll still use your taxable income to compute a debt-to-income ratio and car budget. This can affect people with cash and 1099 income in two ways:

1.    Most bad credit lenders have minimum monthly income requirements that range from $1,500 to $1,800 per month. If you make this much but your tax return doesn’t show it, you won’t qualify for a loan.

2.    If your reported income meets a lender’s requirements but your income is actually higher, there is always the chance that your monthly expenses are out of proportion to your reported income. For example, if you report an income of $2,000 per month but your actual income is $3,500, you might have monthly expenses of $1800. Even though your actual debt to income ratio works, the difference between your reported income and your actual expenses would not qualify you for approved auto loans.

As we see it

If you receive your income in cash or as an independent contractor and need to finance your next car with a bad credit auto loan, you have to look at the income you pay taxes on and how this will affect the income and debt to income requirements of these lenders.

Auto Credit Express specializes in placing customers with bad credit with dealers that can help them. These affiliate dealers are knowledgeable and work with a broad spectrum of lenders to ensure you have your best chance of getting a problem credit auto loan.

Erroneous 1099-MISC - Ask TaxGuru

“I have already provided them Form W8-BEN.”-->So, you have no any earned/ unearned taxable income that you eanred in the US as a non-resident alien, then why have you provided them with the Form W8BEN??? As you can see, Form W8BEN is used to establish that you are not a U.S. person , claim that you are the beneficial owner of the income for which Form W-8BEN is being submitted, and claim a reduced, or zero, withholding as a resident of a foreign country with which the United States has an income tax treaty. What I mean is that as long as you have no income in US, you do not need the Form W8BEN. In addition the Form W8BEN can be used to claim exception from domestic information reporting and backup withholding for income,i.e., interest on bank deposits Interest, dividends, rents, and royalties from a foreign source, that is not subject to foreign-person withholding. “How can I compel this company to stop issuing these erroneous 1099-MISC forms, and/or correct them?”---> you need to contact the company that keep issuing the errorneous 1099-MISC Forms and ask them to correct 1099-MISC Forms. If you are unsuccessful getting a satisfactory answer to the discrepancy or getting them to agree to send you a corrected 1099-MISC, then you will need to call the IRS at (800) 829-1040; as they filed errorneous 1099MISC forms with incorrect information, they should file a "corrected" copy as soon as possible. They need to check the box at the top of the form that says corrected. If they are just correcting a Tax ID #, they need to complete all the information such as your name and address exactly the same as the original except put the correct Tax ID number and zero dollars in amount box. They need to complete a new 1096 form to transmit the corrected 1099MISC Forms and write in bottom margin of the 1096 "Filed to Correct SSN/TIN" or ETC. They need to check the box at the top of the form that says corrected. If they are just correcting a Tax ID #, they need to complete all the information such as your name and address exactly the same as the original except put the correct Tax ID number and zero dollars in amount box. They need to complete a new 1096 form to transmit the corrected 1099MISC Forms and write in bottom margin of the 1096 "Filed to Correct SSN/TIN" or ETC.

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