Thank you for your reply. Understood that I will need to pay federal, social security and Medicare tax on the amount. The income is reported on 1099-MISC in box 7 as non-employee income. I ask because this income was earned as a direct result of my employment and therefore I don't view this as self employment income. The income however is not paid by my employer. It appears that I need to include the gross amount in line 1 of form 1040, and report it using 1040 schedule 2 and form 8919.
