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Old 02-23-2015, 07:13 PM
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1099-Misc Box 6

I live and work in Massachusetts and am not self-employed. I received a 1099-Misc from the Commonwealth of Massachusetts, which included an amount in Box 6- Medical and Health Care Payments. In 2014 I received payments for the reimbursement of health insurance costs. My employer pays for 50% of my health insurance. Massachusetts had a program which helped pay for health insurance costs for people whose income was under a certain level. Previously the state of MA made these payments directly to my employer who reduced how much I paid out of my paycheck each week for health insurance. The state changed this and started to issue checks directly to the employees to offset costs of health insurance.

EX: Weekly in 2013 for my health insurance my employer paid $50, I paid $13 out of my paycheck, and my employer received $37 per week from the state of MA to reimburse them for the difference.

Weekly in 2014 for my health insurance my employer paid $50 and I paid $50 out of my paycheck. Monthly I would get a check from the state of MA for $150 instead of my employer.

If I enter this information when doing my taxes in box 6 of the 1099-Misc it then wants me to enter self-employment information and then complete schedule C. Am I suppose to enter this amount somewhere else on my tax return? Do I even have to claim this at all on my tax return? Is this even taxable income?



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Old 02-23-2015, 08:49 PM
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If I enter this information when doing my taxes in box 6 of the 1099-Misc it then wants me to enter self-employment information and then complete schedule C. Am I suppose to enter this amount somewhere else on my tax return?======>>>>>>>>> Because you are not in the trade or business of providing medical care, I think it is reasonable to take the position that this is not self-employment income, and that it is not subject to self-employment tax. So I think you could put it on line 21 on 1040. The instruction is not the reporting documents that determine the taxation of an item; rather, it is the nature and character of the income or expense that determines its treatment under the tax law; the IRS instructions are not the tax law. At best, they are an IRS interpretation of the tax law. But in this case, they may not even be that. They are just instructions, which arguably do not account for all possible variables.So I the income is not subject to SE tax. But you better attach an explanation or a disclosure/ with a letter explaining the facts and circumstances or you will probably get an IRS letter.

Do I even have to claim this at all on my tax return? Is this even taxable income?========>>>>>>>>>>as mentioned above. Each time you may send the same letter in response and the tax and penalties ‘d be abated.



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