SE Taxable ?

[Art]

A director who retired in May 2009 continues to have a portion of his medical insurance premiums paid by the cooperative. In 2009 he receives $ 750 in director fess. The coop pays his medical insurance premiums and he reimburses them for his 25% portion (same as in prior years). In prior years he paid SE tax on the director's fess and the unreimbursed portion of his medical insurance premiums. Now that he is retired and no longer provides any services to the coop is his unreimbursed medical insurance premiums paid after May 2009 still subject to SE tax for 2009? What about 2010?

[kcjenkins]

Just shooting from the hip here, no cite, but I'd assume it was for 2009, since he did have income from services in 09. For 2010, no services should mean no SE tax and no deductions, just a Line 21 entry. Hopefully the organization will give him a 1099Misc with the amount in box 3, not box 7.

[mcb39]

It will be interesting to see what kind of 1099 that my director client receives this year. He has not come in yet. He is also a berry farmer and an insurance salesman so has three Sch Cs. Will post when I have more input.

[Art]

To clarify in 2009 the director fees were reported in box 7; the insurance premiums in box 6. For 2010 there will be no directors fees, just the insurance premiums which will be show in box 6.

Just shooting from the hip here, no cite, but I'd assume it was for 2009, since he did have income from services in 09. For 2010, no services should mean no SE tax and no deductions, just a Line 21 entry. Hopefully the organization will give him a 1099Misc with the amount in box 3, not box 7.