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But this creates another problem.....if the agencies list the monies received "non-employee compensation" not only will families have to pay  income taxes on it, they will also have to pay Social Security on top of that, too, right? That doesn't seem fair.....considering these funds are received to care for a student (like foster care). Is there another way to categorize the income on the 1099 without using "Non-Employee Compensation" so that all that is paid is income tax?

 

Thanks!

~Sikora