1099misc for teacher

[ljwalters]

Client (teacher) was paid to take a class on math concepts. IT was reported on 1099 misc. under nonemployee comp. Wouldn't this be box 3 other income? No se tax.

What is your opinion.

[Terry D EA]

Yes, did they put the amount in box 7 of the 1099 MISC? If so, you can still carry it to line 21 other income. This is wierd though. As a teacher myself I have attended many required classes/workshops that the district had paid for and have never received a 1099 MISC. This must have been done on an individual basis for some benefit of the school district. Hmmm.

[Lee B]

It sounds like the school district was getting creative and massaging their budget numbers.

[jainen]

>>workshops that the district had paid for<<

In the original post the teacher was paid to take a class, which is different from paying for a class. If it was from the regular employer, it should have been on the W-2 so you should report it on Form 8919. Otherwise, Line 21 but prepare for an IRS letter.

[Guest Taxed]

A CPA friend had advised me that if a 1099 Misc with income in box 7 is reported then the W2 taxpayer is considered to have self-employment income (SE taxes) for a portion of the total income. So that would lead to the next logical step to create a Sch C-EZ and deduct the cost of the course, books and supplies and travel if appropriate.

Perhaps that is the reason the employer issues a box 7 figure instead of box 3 which will preclude a Sch C.

[jklcpa]

The issuance of the 1099 could also be because the teacher's W-2 was issued for the amount to agree with his or her contract (for union purposes or financial audit), and so this was dumped onto the 1099. I'm not agreeing with it, just that I've seen this before. I had a teacher client that was an athletic director that received two W-2s from the same school. The larger one was for the regular school year covered by his contract and the second W-2 was for the summer program.

I know of an electrical contracting company where the owner reported all the bonuses to the employees on 1099-misc because he said he couldn't give the electricians any bonuses to be included in their W-2s without violating the contract negotiated through IBEW. Even the office personnel bonuses were on 1099s. At least that was the story that was told to me. Maybe the bookkeeper *forgot* to include in the W-2s so no withholding would be taken out (we've probably all seen that before) and then decided to issue the 1099s. BTW, this is not my client.

[kcjenkins]

I'd put it on a Sch C-EZ, and take any related expenses. If there is a profit, it WOULD be subject to SE tax.