- quote -

This seems correct. If the employer is not the same
governmental entity that provided the incentive, then the
1099-MISC amount should properly be on line 21 and no self
employment tax would be due.

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Bruce E. Cobern wrote:
- quote -

depends on where you are. in Hawaii teachers are state
employees. We may not be the only state where this is so.

Maren

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- quote -

I tend to agree that these incentives paid by employers to
employees are W-2 income and not 1099 income. However I
would not do as Phil suggests and merely pay my FICA etc.

I'd pose the question to the IRS and let them sort it out
with the employer! If this is a statewide problem somebody
in the IRS should be able to sort it out. Hey, for all we
know the good folks in CT got a private letter rule from the
IRS to cover this situation?

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"Phil Marti" <philmarti[at]aol.com> wrote:

- quote -

Why do you presume it was the EMPLOYER who issued the 1099?
It sounds like it was the State of Connecticut as a result
of an incentive program. Most likely the employer is some
local school district. Most teachers don't work for the
state.

--
Bruce E. Cobern, CPA
mailto:bec[at]pipeline.com

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Phil Marti wrote:
- quote -

It may not be that simple. If the employer is the local
school district, and the incentive is from the state, it
might properly be on the 1099-MISC, and transfer to line 21.

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Michelle Kapp wrote:

- quote -

I would presume it appears on a 1099-misc form. But then we
need to know, was it listed as non employee compensation?
or just as "other income"?

Cheer$,
Harlan Lunsford, EA n LA

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"Michelle Kapp" <smfwdf[at]comcast.net> writes:

- quote -

I'm getting really tired of these employers, especially one
like this who should know better, reporting employee
payments on 1099's instead of the W-2. It makes one think
they're trying to get around their portion of FICA/Medicare
and FUTA. I'd include it as wages, pay the employee
FICA/Medicare on the unreported tips form, and let the
employer fend for itself.

Phil Marti
Topeka, KS

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As an incentive, Ct gave some new teachers a $2,500 grant to
teach in Ct. They issued a 1099 with the amount under non
employee compensation. Is this "other income" to be put on
Line 21, or Schedule C income subject to SE tax?

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