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I made money last year from various health insurance companies for caring for patients in the hospital. This income was paid to me as 1099 income. Generally I'd be able to keep this and report it on a schedule C and SE form
as taxable self employment income. However, because I'm still in a "start up" mode at work with a guaranteed fixed salary for the first 2 years, my practice kept all of this money as part of my job offer agreement. I never received a penny of it. I already have a letter from my practice to include in my tax return saying that I received none of this income. The question(s) is:
1) how do I report this income (and expense, since it was all forfeited to my practice) on my schedule C form such that I do not get taxed for (since I never received any of it)?
2) is/was this activity considered NOT "AT RISK"? and if so, are there other particular tax forms that I need to fill out (ie, Form 619
?
4) if the 1099 income was paid by different insurance companies, each having a particular employee ID number, do I need to fill out a different schedule C for each payor?
Zip Code: jahlborn@techie.com
James,
This is a late reply, but perhaps it will still help. Based on your situation, you would fill out a Schedule C (just one) reporting all of the income reported in your SSN. Then you would take a deduction for the amount given to your practice, reporting the deduction as a Nominee for your employer, and indicating your employer's Federal Employer Identification Number. You wouldn't pay any tax, and the income would be shifted to your employer.
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Replying to:
I made money last year from various health insurance companies for caring for patients in the hospital. This income was paid to me as 1099 income. Generally I'd be able to keep this and report it on a schedule C and SE form
as taxable self employment income. However, because I'm still in a "start up" mode at work with a guaranteed fixed salary for the first 2 years, my practice kept all of this money as part of my job offer agreement. I never received a penny of it. I already have a letter from my practice to include in my tax return saying that I received none of this income. The question(s) is:
1) how do I report this income (and expense, since it was all forfeited to my practice) on my schedule C form such that I do not get taxed for (since I never received any of it)?
2) is/was this activity considered NOT "AT RISK"? and if so, are there other particular tax forms that I need to fill out (ie, Form 619 ?
4) if the 1099 income was paid by different insurance companies, each having a particular employee ID number, do I need to fill out a different schedule C for each payor?
Zip Code: gary@davisandbrandel.com