How do I report Florida's First Responder Recognition Payment on my taxes?

[ja16336]

Yes i am a firefighter and I received a 1099-nec. So we do have to include in our taxes.

[ThomasM125]

Yes, you do need to report the form 1099-NEC on your tax return. You will see an entry option for it in the Wages and Income section of TurboTax, under Other Common Income.

[vanettenco]

Yep, under wages you can report the 1099-NEC, make sure it is the corrected one, they errored on the LE side not sure if that was state wide.  The news one went out a week later, block 4 should read 0.00. 

[SAC_ Product Expert]

@DaveF1006  in following the steps that you have outlined... Will this make the Florida 2022 1099 NEC First Responders Not Taxable in Federal, but will be Taxable in Florida State? So those that would not normally have to file Florida State Taxes, if they receive the 1099 NEC in 2022 For First Responders, will they need to file Florida State Taxes? 

Thanks so much! 

[ja16336]

No State taxes in Florida. But yes you will have to pay federal taxes with this bonus that first responders received. Everyone received an extra $338.77 to cover the taxes.

[vanettenco]

Florida does not have an income tax, don't listen to me because I just entered the corrected version to update my taxes and it took the entire amount in taxes.    I just spent another 2 hours on line again with Turbo Tax Expert and they have no answer for me other than the state should not of put it on a 1099-NEC.  I will end up paying the entire amount to the IRS, stupid crazy,  not even sure at this point if it is Turbo Tax program is the problem or the State for coding it as such, ultimately it is my problem and the IRS wins again.

[LindaS5247]

The Form 1099-NEC will be taxable on your Federal Tax Return.  And the Form 1099-NEC should be entered in TurboTax.

The First Responder Recognition payment that was issued during the 2021 tax year was not taxable. No 1099 was issued for that payment. The payment that was issued in 2022 is taxable, per the letter that accompanied the payment. A 1099-NEC was subsequently issued by the state to the recipients of the payments.

To report this so it doesn't appear as a business, do the following.

1. Sign in to your TurboTax account.
2. Click on Federal Taxes tab.
3. Choose Wages and Income.
4. Scroll down to Other Common Income
5. Select 1099 -NEC
6. Enter the 1099 NEC information'
7. Then it asks for the description of the income. Give it the proper description.
8. When you reach a page that says Does one of these uncommon situations apply?
9. Select This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby (this is not common).
10. This will then be taxed as common income and not business income.

Florida does not have a State Income Tax, so it is not reported on a Florida State tax Return.  

Click here for information on Florida's Essential First Responders Recognition Payment.

Click here for additional information of Form 1099-NEC.
 

[LaughyDaffy1]

Most 1st responders got extra on their 1099NEC to cover taxes and SE.  The most accurate way to take are of this is to enter the 1099NEC as is and give it a description like "offset under 26 U.S.C. § 139 statee of FL 1st responders" and don'tclaim any expenses sso that Turbotax will not require you to pay more for Self employment filing and enter the date started and ended in 2022 for the IRS to understand that this was a one time payment and not an official business.  I verified that it covers enough both Federal and SE taxes and no other adjustment necessary.

[vanettenco]

I did all of this spent 3 hours on line with 3 different Turbo Tax experts one even passed me up the chain and at the end of the day they said it should of been on a 1099-Misc, I agree, I had to file a supp. due to the second revised 1099-NEC being issued and the IRS took 100% of the money, the Experts could not help I went to the top of the expert pile, my CPA I called stated they would carry under business even though it is not, check with my friends two different CPA's they stated the same they were filing under corp.  Turbo was no help for me, I ultimately paid the entire thing to the IRS was not worth any more of my time.  Not happy with Turbo Tax on this nor the State of Florida, no benefit and wasted hours.  

[BSmall1]

This is correct. A couple of things:

1. First Responders who received the bonus got 1099-NEC that originally displayed a bonus paid of $1,338.77 and a Federal Income withheld of the same amount. A CORRECTED 1099-NEC was sent out where the Federal Income withheld was changed to $0. There was even a statement on the CORRECTED form that stated the first 1099-NEC was wrong.

2. The state included $338.77 in the check to cover Federal taxes so the check would be a true $1,000 bonus.

3. The steps on how to report this income (1099-NEC) have been covered/copied and pasted several times in the thread and does work. Following these steps keep it from having to be reported as a business.

4. I wish more guidance would have been given while completing the taxes themselves, but glad we have forums that people were able to provide the guidance.

[BBraun]

A 1099-NEC for was received for the  Florida First Responder Recognition for 2022.  Which means to me that I need to report the income. 

With that in mind.... how do I complete all of the turbo tax boxes?: The prinicple business code

[PattiF]

The state stimulus payment is not considered self-employment. It can be entered as other income without having to pay self-employed taxes. You will not need a principle business code.

1. Sign in to your TurboTax account.
2. Click on Federal Taxes tab.
3. Choose Wages and Income.
4. Scroll down to Other Common Income
5. Select 1099 -NEC
6. Enter the 1099 NEC information'
7. Then it asks for a description of the income. Give it the proper description.
8. When you reach a page that says Does one of these uncommon situations apply? 
9. Select This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby (this is not common).
10. This will then be taxed as common income and not business income.

Even though the payment was related to your occupation, this is not considered self-employment.

Please see the discussion about this issue by Experts and others who have received the same 1099-NEC.

[soccermaniac015]

I hope you got this figured out I know this is from last year, but I just figured out how to do it correctly on this years taxes. Realizing it did it wrong last year because of filing under 1099 NEC and having to create a non existent business of Schedule C- so didn't get as much back as I should have. UGH. But file the FIRST RESPONDER RECOGNITION PAYMENT as 1099 MISC enter the amount in Box 3 and thats it. You should get more $$ back and then you don't have to create a Schedule C. 

[jenniedk19]

when i put the minus sign in front of the amount of the 1099- NEC if gives me more of a refund like it taking the taxes off even more than if i just put the amount in the miscellaneous income area