Revenue Ruling 2004-60. Found a different link: https://divorcefinancialtraining.com/wp-content/uploads/2020/12/2004-Article-Divorce-and-Stock-Optio...
And another article: https://www.plansponsor.com/irs-clarifies-non-qual-compensation-tax-status/
After reading all this and looking into the 1099 forms further, the effect of having my ex pay self employment taxes still wouldn’t occur through a 1099-misc. It would if I issued a 1099-nec; however, as you pointed out, he didn’t perform services. So, I will go the route of requesting reimbursement and hope it doesn’t cost me thousands of dollars in lawyers fees to enforce our separation agreement.
Can I ask to be sure?
If I follow the community income rules and report a negative amount on Form 1040, Schedule 1, Line z, does the tax reimbursement he owe me based on 7.65% or 15.3%? I am unclear what portion of the self-employment tax he will owe me if he reports a positive amount of Schedule 1, line z.
