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Subject Author Date
Self Employment Tax kupchik 03-08-2008
Posted by kupchik on March 8, 2008, 10:23 am
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 If I get a 1099-misc from my former employer as a partial payout
(banruptcy) for severence pay and nothing was withheld, how does this
get reported.
Do I have to pay their portion of SS tax? Is this considered earned
income for the purposes of IRA contributions?

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
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Posted by Phil Marti on March 8, 2008, 11:28 am
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> If I get a 1099-misc from my former employer as a partial payout
> (banruptcy) for severence pay and nothing was withheld, how does this
> get reported.

I'd report it as wages on line 7 of the 1040.

> Do I have to pay their portion of SS tax?

No. Include Form 8919 with your return to compute and pay the employee's
portion.

> Is this considered earned
> income for the purposes of IRA contributions?

Yes

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by kupchik on March 22, 2008, 10:25 am
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> > If I get a 1099-misc from my former employer as a partial payout
> > (banruptcy) for severence pay and nothing was withheld, how does this
> > get reported.
>
> I'd report it as wages on line 7 of the 1040.
>
> > Do I have to pay their portion of SS tax?
>
> No.  Include Form 8919 with your return to compute and pay the employee's
> portion.
>
> > Is this considered earned
> > income for the purposes of IRA contributions?
>
> Yes
>
> --
> Phil Marti
> Clarksburg, MD
>
> --
> << ------------------------------------------------------- >>
> << The foregoing was not intended or written to be used,   >>
> << nor can it used, for the purpose of avoiding penalties  >>
> << that may be imposed upon the taxpayer.                  >>
> <<                                                         >>
> <<   The Charter and the Guidelines for submitting posts   >>
> <<  to this newsgroup as well as our anti-spamming policy  >>
> <<                  are atwww.asktax.org.                 >>
> <<         Copyright (2007) - All rights reserved.         >>
> << ------------------------------------------------------- >>

Do I have to file an SS-8 to be classified as an employee?

========================================= MODERATOR'S COMMENT:
Please delete all unnecessary parts of the prior message when responding.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Phil Marti on March 22, 2008, 10:55 am
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> Do I have to file an SS-8 to be classified as an employee?

You indicated in your OP that you were already classified as an employee
(getting W-2's). If your work for this now bankrupt payor was as an
independent contractor (getting 1099's), you need to report the payment on
Schedule C and pay full self-employment tax.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by kupchik on March 24, 2008, 1:25 pm
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> > Do I have to file an SS-8 to be classified as an employee?
>
> You indicated in your OP that you were already classified as an employee
> (getting W-2's).  If your work for this now bankrupt payor was as an
> independent contractor (getting 1099's), you need to report the payment on
> Schedule C and pay full self-employment tax.
>
> --
> Phil Marti
> Clarksburg, MD

Phil,

Somehow the key point that I was trying to make was deleted by the
moderator from my question.
I do NOT work for the bankrupt company either as an employee or as an
idenpendent contractor anymore. I have just received a payout of
"serverence pay", which was earned from my prior employee work. This
is being reported to me on a 1009-misc (I believe it should have been
reported on a W-2).

How do I report this, and if on a 8919, do I need to file an SS-8?


========================================= MODERATOR'S COMMENT:
The moderator either approves or disapproves messages as a whole, and does
not delete portions of them.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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