TKTax Posted June 14, 2009 Report Share Posted June 14, 2009 Some railroad workers, as members of the UTU, are eligible to receive payments from the job benefit fund. It is a plan providing payment for a specific amount and period of time to an employee suspended, dismissed or removed from service. The workers pay a voluntary assessment from their paychecks. The benefits paid are reported on a 1099-misc as other income. My question is, are these benefits taxable? Would they be allowed to deduct the assessment from them? thanks for any input Tim Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted June 14, 2009 Report Share Posted June 14, 2009 Pub 525 "Private unemployment fund. Unemployment benefit payments from a private fund to which you voluntarily contribute are taxable only if the amounts you receive are more than your total payments into the fund. Report the taxable amount on line 21 of Form 1040." ------------------------------------------------ My comments----- Use the cost recovery method to determine the amount reportable as income. Is only the excess of payments over contributions report on the 1099? Quote Link to comment Share on other sites More sharing options...
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