Hi thanks for the response. According to the info about the check we received, the payment was for $1,000 and we received over a thousand to cover the taxes we would have to pay on it. Am I misunderstanding this?

DianeW777

Possibly. The payments made under the Payments to Pandemic First Responders program are considered qualified disaster relief payments under 26 U.S.C. § 139 and will not have income tax or employer taxes withheld.

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Fderac

Even though I received a 1099-NEC.

Gibson844

I have a client who received a 1099-NEC from State of Florida First Responder Payments Program in the amount of $1338.77 with federal withholding of $1338.77...hmm. My question is this is a one time thing and ProSeries wants you to check Schedule C or Schedule F which is neither and if I select Other Income then no SE tax...is that correct?

Justme1

I received the same. I reported it, and they issued a corrected 1099-NEC. $1,388 in income, and zero withholding for taxes.

Cnlance

@DaveF1006 We received a 1099-NEC form and were told that this payment was taxable. How do we file this form to correctly be taxed?

Vanessa A

To report your First Responder Recognition Payments as taxable income but not as self-employment select the following:

Income
Show More next to Less Common Income
Start next to Misc Income
Start next to Other Reportable Income
Enter the amount of the money you received and the description.

This will enter the income on line z of her Schedule 1 with a description which will then flow to line 8 of the 1040. It will be taxed as ordinary income instead of self-employed income.

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Cnlance

@Vanessa A The option you described specifies not to include income from 1099-MISC. We were given 1099-NEC forms marked as Non-Employee Compensation. Is the process you described acceptable for 1099-NEC forms?