05-19-2004, 07:25 AM
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 Re: Self-employment tax for ex-employee "taxi" <spooltix[at]yahoo.com> wrote: - quote - > I resigned from company A and joined company B. While at A,
Because the company did not withhold one half of the SS &> I worked on a few patents which got issued after I had > resigned. So, A sent me a monetary patent award which they > award to employees (once patents are issued) even after they > have left the company. The patent award showed up on my > 1099-MISC (Box 7) as "non-employee compensation". > I filed this income as normal wages (subject to income tax, > Social Security & Medicare) on Federal Form 1040. However, > IRS is insisting I should pay an additional self-employment > tax on the patent award amount. I don't understand ... I was > not self-employed by any means - even according to Pub. 533, > so why is this income subject to SE tax? > Can someone please help clarify? Med. taxes and you did not file a schedule SE and pay both parts of SS & Med. If you disagree that you should have to do this, you will have to take it up with the company. Missy Doyle << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
05-17-2004, 10:44 PM
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| Self-employment tax for ex-employee I resigned from company A and joined company B. While at A, I worked on a few patents which got issued after I had resigned. So, A sent me a monetary patent award which they award to employees (once patents are issued) even after they have left the company. The patent award showed up on my 1099-MISC (Box 7) as "non-employee compensation". I filed this income as normal wages (subject to income tax, Social Security & Medicare) on Federal Form 1040. However, IRS is insisting I should pay an additional self-employment tax on the patent award amount. I don't understand ... I was not self-employed by any means - even according to Pub. 533, so why is this income subject to SE tax? Can someone please help clarify? Thanks. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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| exemployee, selfemployment, tax |
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