I had received the Hero for being a childcare worker in 2021. I received 3 payments. I had got a 1099 form for these payments. Do I have to include this on my tax return?

Forum|Forum|4 years ago
February 1, 2022
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stephgriffithAuthor

Level 2

Hero payment*

ColeenD3

Level 15

Is the money I receive for Hero Pay taxable?

OCCRRA does not provide tax advice and encourages professionals to reach out to your tax preparer regarding tax questions. OCCRRA follows the IRS guidance and will generate a Form 1099 for these funds. Hero Pay Funding is from the Federal Stimulus funding in 2021. Currently, the IRS has not provided guidance that these Stimulus funds are not taxable.

HERO

Opus 17

Level 15

Yes, it is taxable. If it was a rebate or tax credit against your state income tax, it would not be taxable--this is how the federal stimulus payments were handled in the law. Since this was a direct payment based on your particular profession, I would argue this is taxable income. However, I would take the position that this is taxable "other income" and not taxable self-employment income. (This matters because self-employment income is subject to an additional 15% self-employment tax.)

Did you get a 1099-MISC or a 1099-NEC?