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Retirement tax questions
Hi Dave,
The form giving me a hard time is 1099-MISC issued for Length of Service Award Program (LOSAP) payments for serving as a volunteer firefighter in the State of New York.
The payments are not taxable by the State of New York and are not be subject to Social Security or Medicare taxes and should not be treated as self employment/sole proprietor business income.
In the "Picture of Your 2021 Income" in TTax Premier 2021 it lists the payments as "Sole Proprietor Business" which is incorrect. With this mis-categorization it seems TTax is adding self employment taxes (Fed, SSA, Medicare, and State Taxes).
I did get another reply from one of the "Tax Experts" that tells me to simply indicate the payments received are "Hobby Income" thereby not being subject to business taxes.
I had the same problem last year but don't recall how it was resolved. Is there a way to find that out in 2020's tax return file?
Thanks for whatever help/guidance you can provide.
NCFM80