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 » From: Some place unknown Dear TaxMama: Could you please clarify if receiving a 1099 MISC (with amount written in box 3 "other income") means that one is employed? I ask this question as I am awaiting my work permit however, I signed up for my job prior to receiving my work permit (which I just signed up for making a future commitment upon receiving my work authorization). However, since the position entailed a signing up bonus, I was given a check for that and later I was sent a 1099 MISC with sign-up bonus amount written in box 3 "other income". Since I am still awaiting my work permit (which I shall receive shortly), I want to have this clarified so that receiving sign-up bonus is not considered as "employment" (i.e. employment without work permit). Please clarify. Thanks, PS Dear PS, Perhaps for Immigration purposes, this is not employment income. After all, it is a hiring bonus for before you start the job. You may need to explain it to them if it comes to their attention. For tax purposes, it IS income and is even subject to additional Self-Employment taxes. You'll need to use Schedule SE and pay 15.3% of that amount into the Social Security system. Get some help to do this properly. Best wishes, Eva Rosenberg Your TaxMama  |
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