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1099-misc "other income" and self-employment tax

Is1099-MISC BONUS INCOME listed on LINE 3 "other icome" SUBJECT TO SELF EMPLOYMENT TAX? IS THERE ANY SITUATION WHERE IT IS NOT?

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    Usually, this is going to be subject to SE tax. Is this from the employer? If so, it probably should have been on the taxpayer's W-2, but  a lot of employers are still issuing 1099's for this stuff...which means the employe gets stuck with both ends of the FICA on the bonus..

    By the way, that looks like a blue heeler?? They are GREAT dogs!

     

    • That is what I thought but I wanted to make sure.  The bonus doesn't come from the employer it comes from a company that the employer sells for.  Example: He works for a company that sets up oil clients.  When he sets up a client for one of their vendors that vendor gives him a "spiff" or bonus.  His employer pays him w-2 wages but this vendor gives him the spiff bonus as a 1099-misc "other income" in box 3. And yes, that is my blue heeler...she is great!
    •  SPIFFs are statutorily exempt from SE tax. 
    •  Great! That is good news. Do you know where it says that in the IRS code?  I like to print out the code when I have a question like this and include it in my notes of the return.
    • Rev. Rul. 1970-337 PLR 9525003 Pubs 3204 and 525
    •  THANK YOU SO MUCH!
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