"D. Stussy" <kd6lvw[at]bde-arc.ampr.org> wrote:
- quote -

An accountant told me, that because they were not calling it
wages and paying their half of the social security, that I
had to call it SE income and pay double SE income. Did I
misunderstand him. (unfortunately I am no in a position to
clarify it with him now.)

- quote -

Sure, but I have to deal with it.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

JS wrote:

- quote -

Huh? "Back pay" is WAGES, not SE income.

- quote -

One 1099 is wrong, no matter how one looks at it.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"JS" <JohnSmith4321[at]hotmail.com> wrote:

- quote -

Hire someone to look into the issue. You've provided no
facts which would make any determination of how to treat the
settlement.

--
David M. Woods, EA
Boston, MA 02109

Postings here are general information only and not to be
relied upon as advice.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I received a settlement of 60 monthly payments. It consists
of back pay, interest, and attorney's fees.

I understand that the back pay must be designated as
self-employment income, with appropriate social security
taxes paid on it.

I wonder what to do with the interest and attorney's fees.
It is all on one check, with one 1099-misc. I don't mind
calling them wages and paying SS on them because I then get
to deduct them against the medical insurance I am paying
for. It is pretty much a wash; I just want to do in the way
that will make the IRS happy.

Any advice

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->