My physician husband, who is a medical fellow in training, recently signed an employment contract to begin work at a hospital when his fellowship ends in 2013. He received a sign-on bonus this month for the gross amount of $10k. I assume we will eventually receive a 1099-misc for this amt. My questions are:
1. How do we calculate federal and state income tax amounts to pay;
2. Do we pay FICA on this bonus even though he is not a employee yet? (ie. Is this considered SE earnings?) He has performed no work for these wages, just signed a contract.
HELP!

I answered your question via email. Did you get it?

No-- a friend has told me I have to report bonus as independent contractor income on schedule c and schedule se. Was this your answer as well?

Actually, it was my opinion that the hospital SHOULD issue a W-2 for the bonus, because it is considered compensation to your husband as an employee.

However, if they insist on issuing Form 1099-MISC and "Nonemployee compensation", he would file as an independent contractor using Schedules C and SE.

Did you not get my email?