Ask Experts Questions for FREE Help !
Ask
    Doctorwife's Avatar
    Doctorwife Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Dec 9, 2011, 09:19 AM
    Tax Question for Sign-On Bonus
    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!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Dec 12, 2011, 07:32 AM
    I answered your question via email. Did you get it?
    Doctorwife's Avatar
    Doctorwife Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Dec 12, 2011, 06:24 PM
    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?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Dec 13, 2011, 09:00 AM
    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?
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Sign on bonus question [ 4 Answers ]

Hi I have a question about the tax refund of my sign on bonus. Married jointly, one new born baby Started to work last Jan, sign on bonus $5,000 was included in W2 form, after tax bonus received $2,877 Box 1 in W2 form is $59,196.03,box 2 federal is $4,854.62 How much refund I should received...

Sign on Bonus Taxrepay & deducting yearly bonus from my sign on [ 1 Answers ]

I got a $5,000 sign on bonus & left the company under 1 year. They held back my $3,033 yearly bonus to deduct it from what I owed them in sign on. BUT they took taxes out of the $3033 bonus before deducting it from what I need to pay back. So they are subtracting $1817 from $5,000, saying I...

Sign-on bonus question [ 3 Answers ]

I had received a sign-on bonus last year, so it appeared as an income last year and I have paid taxes on it. As I did not complete one year with the company I had to return my sign-on bonus this year. How do I claim already paid taxes?

Another sign on bonus question [ 3 Answers ]

Hello, I have a question about a sign on bonus I just received in May. It was for 21,500 and after taxes I received approximately 12,800 dollars. I have been working for the company for a few months now, and now am moving out of the agreed area for my bonus to be effective. Is there any way...

View more questions Search