Union Strike Benefits Reported On 1099MISC, Box 3

[Booger]

Morning, everybody. Have a PA client that received union strike benefits of $1,000 in 2009.

This benefit was reported to him on a 1099-MISC, Box 3. I know that these benefits are reported

on the 1040 as compensation, but my first question is where, Line 7 or Line 21? If Line 7, how

do I link the 1099-MISC to report the $1,000 on Line 7?

Second question. If these benefits are considered compensation, are they subject to SE Tax?

Booger

[Gail in Virginia]

If they are benefits received from the union because he is unemployed, they are included on line 21. Unless he contributed to a special union fund and the payments to the fund were not deductible, in which case the benefits received may be offset by his contributions and only the amount over that is taxable.

[kcjenkins]

Line 21, not subject to SE tax, 7th item down is where box 3 flows. Just enter the 1099 and where it says "Select form to link box 3 to:" you select the first choice, "1040 Other income".