hello!

I need to know what you guys advise me doing? (perhaps seeking legal advice)

But, I took a job as a pharmacist at a local hospital. I actually took the job before I finished my grad schooling/rotations.

They had offered me a 20k sign on bonus, however it was never referred to as a sign on bonus. All the paper work referred to it as sometype of scholarship.
And as a matter of fact when I was with HR prior to taking the job, I was told I wouldnt be taxed on it.

Well, now the hospital filed a 1099 for me, for the entire 20k. And I am suppose to pay tax for this. I DO NOT have that kind of money for one.

Two, I feel this is the employeers fault, however with them being a big hospital they are not really helping their employees. It also looks like a couple of us are in the same boat.


I wouldnt have had a problem with them taxing it before I got the money.

I guess my question is what do you recommend I do? How can I cut this money down??? or eliminate having to to somehow come up with all the money to pay taxes on this...


I am in need of serious help ! thank you in advance

ebaines

Grants that are made to cover tuition and fees or required books for school, and without expectation of the student performing a particular service would be untaxed. But stipends for things like living expenses and food are taxable, as is money from the university that is given to a student in exchange for a service. So since this money was in exchange for your working at the pharmacy, it would be taxable. See the following tax tip:

Tax Topics - Topic 421 Scholarship and Fellowship Grants

If you are unable to pay the tax bill due by April, contact the IRS to work out a repayment plan.