While I would not think so, since this is income that is not compensation for work done, the IRS says yes.
See IRS Pub 590A "What is Compensation"
https://www.irs.gov/publications/p590a#en_US_2016_publink1000230355
What Is Compensation?
Generally, compensation is what you earn from working. For a summary of what compensation does and does not include, see
Table 1-1
. Compensation includes all of the items discussed next (even if you have more than one type).
Wages, salaries, etc.
Wages,
salaries, tips, professional fees, bonuses, and other amounts you
receive for providing personal services are compensation. The IRS treats
as compensation any amount properly shown in box 1 (Wages, tips, other
compensation) of Form W-2, Wage and Tax Statement, provided that amount
is reduced by any amount properly shown in box 11 (Nonqualified plans).
Scholarship and fellowship payments are compensation for IRA purposes
only if shown in box 1 of Form W-2.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
