Discussion:Hawaii preparers with police clients

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Hawaii User Group --> Hawaii preparers with police clients


Taxea (talk|edits) said:

30 August 2008
I am curious as to how you report the 1099 special duty income for your police clients.

Do you put the income on Line 21 and the expenses on 2106 lumped in with the rest of their "on duty" expenses? How do you adjust the return to remove SE tax if you do a SCH C? Here is why I ask: HPD has a memo from the IRS that states (in summary) that police officers are not subject to SE tax, therefore because the special duty is all sanctioned by the police department then the client should not be subject to SE tax on the special duty income.

Your thoughts on this...taxea

FCA (talk|edits) said:

2 August 2011
Taxea, did you ever get an answer to the question above from elsewhere? That's an interesting question that I'm sure I'm going to come across in the future. To add to your question, if you do file a Sch C, are you paying the GET on the amount? I vaguely recall in the old firm I worked at, they did have the amount subject to S/E tax. I think they may have had it on the Other Income line and I don't recall if they had the client pay GET.

KatieJ (talk|edits) said:

2 August 2011
Discussion:Police Self-Employment Exempt?

KatieJ (talk|edits) said:

2 August 2011
Well, I don't know how to make that an active link (Note: link has been fixed); I hope Trillium or Kevin will come in and fix it for me. It doesn't answer the GET question specifically, but my guess would be that if it isn't subject to SE tax (because it is really connected with the officer's employment), it probably isn't subject to GET either. On the other hand, if it is not sanctioned by the department, it's probably subject to both SE tax and GET.

To join in on this discussion, you must first log in.
Personal tools