ILLMAS Posted April 25, 2016 Report Share Posted April 25, 2016 TP daycare union covers part of her health insurance and issue her a 1099 with the amount of box 7, however it's reported on line 21 as other income. IRS sent her a notice that the amount was non-employee compensation and is subject to SE taxes, can a quick phone resolve this issue? Quote Link to comment Share on other sites More sharing options...
Lee B Posted April 25, 2016 Report Share Posted April 25, 2016 Unless it meets the tax free fringe benefit exception via the entity who pays your client, how do your avoid the SE Tax ? 2 Quote Link to comment Share on other sites More sharing options...
RitaB Posted April 25, 2016 Report Share Posted April 25, 2016 I agree with cbslee. I don't know why it was on Line 21. 1 Quote Link to comment Share on other sites More sharing options...
Max W Posted April 30, 2016 Report Share Posted April 30, 2016 I have a W-2 client who was paid to buy her own insurance. No 1099 was issued. Handled payment on Sch C and took the SE HI as an adjustment. It wasn't a wash because of the SE tax. Another way to do it is to enter it on Line 21, then generate the SE form. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted May 3, 2016 Report Share Posted May 3, 2016 But she is NOT not self employed though, and that reimbursement policy is worth a $100/ day per employee penalty to her employer, which is probably why she just got cash. I wouldn't sign a return with your creative solution. 4 Quote Link to comment Share on other sites More sharing options...
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