MDCPA Posted March 9, 2010 Report Posted March 9, 2010 Client gives me a 2009 1099-MISC with an amount in box 7 and I asked what is this for - he told me it was for severance pay. In addition, he had a W-2 from the same company. I have never run into severance pay on a 1099 - is this correct and if yes is it subject to SE tax? Quote
imjulier Posted March 9, 2010 Report Posted March 9, 2010 It doesn't seem right....severance should have been included in the W-2. But getting the company to change it isn't likely either. They were probably trying to avoid paying the employment taxes themselves which will make your client liable for it. Quote
TAXBILLY Posted March 9, 2010 Report Posted March 9, 2010 http://www.lorman.com/newsletters/article.php?article_id=1344&newsletter_id=288&category_id=6&topic=CPA taxbilly Quote
MDCPA Posted March 10, 2010 Author Report Posted March 10, 2010 http://www.lorman.co..._id=6&topic=CPA taxbilly Thanks Taxbilly - I've been talking to the client and they will be bringing more information to me, but it sounds like this situation is almost identical to the article - again thanks Quote
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