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Old 02-05-2017, 08:09 PM
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1099 misc income

My husband passed away last fall, I received a 1099 misc, for the accrued vacation pay that was paid to me. This was filed as other income, is this taxable?



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Old 02-05-2017, 11:18 PM
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Originally Posted by Lneagbour View Post
My husband passed away last fall, I received a 1099 misc, for the accrued vacation pay that was paid to me. This was filed as other income, is this taxable?
In general, payments made to employees while they are on vacation are taxable income subject to federal income and Social Security and Medicare tax withholding and federal unemployment tax as if they were regular wages. However, vacation pay paid in addition to employees' regular wages is treated as supplemental wages. This includes bonuses paid to employees working through their vacations, lump sum payments to employees of their accumulated leave paid on termination, and annual payments to employees of their unused vacation time. Vacation pay paid to employees from a fund established under a union agreement is subject to income tax withholding by the union when employees take vacation. The employer is required to withhold and pay FICA and FUTA on these payments.



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