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[byron92]

No, it's W-2 wage income. ALWAYS.

The payer must withhold FICA taxes on the funds and SHOULD withhold 25% for federal income taxes. If they issued a 1099-MISC, you need to contact them and have the 1099-MISC rescinded and a W-2 issued.

If they refuse you'll have to file an SS-8 with the IRS to get a formal ruling (you'll win) and then attach Form 8919 to your Form 1040 return using reason code G in column c. Show the gross amount from the 1099-MISC on line 7 of Form 1040 along with any other W-2 wages for the year.

[teithi71]

No. It's unpaid wages. You owe Social Security on it.