State of Emergency Workers

[meffordtax]

I have a client who basically chases storms and repairs things after a storm. I am not familiar with this but they said that they were told that they were exempt from taxes for working in a federal state of emergency. Where would I put this information in at in the proseries tax system.

Any help would be appreciated.

Thanks

[Just-Lisa-Now-]

Eh, you're gonna have to do some digging, Id venture to guess theres more to it than just what he told you....does he have any link or cite that he can provide for more info on this exclusion?

[qbteachmt]

Works for whom? Repairs what? You can't just drive into a hurricane and declare yourself tax exempt.

[TaxGuyBill]

I think whoever told him that is confused.

There is a provision that an employer can give employees tax-free disaster 'relief' payments if the employees are affected by a disaster.  But that is completely separate from paying wages for work performed.

[Just-Lisa-Now-]

I saw something about Front Line Workers having excludable income, but I dont know any details.

[taxiowa]

If company or organization or state determines that your pay is non-taxable due to working in a state of emergency area, then that amounts should not even be included on W-2.  This much like combat zone pay.  It is not on W-2 to begin with.  Therefore there is nothing for you to do to make it non-taxable.

I am not familiar with what those emergency workers are referring to.  But it could be a state exemption for certain states that you are speaking of.

[taxes96786]

Ask client to provide the specific source of the information from whomever told his this.  Like an IRS code or other document that addresses this.

i.e. skateboard rental companies rent out skateboards but they may be illegal for use, by law, in certain areas and client would be subject to a ticket...but the rental company doesn't tell their customer any of that.

Listen but, verify. Never just believe what you are told.

[GingerU]

I'm not sure  where or how to report it, The Internal Revenue Code provides an exception under IRC 3121(b)(6)(C) from social security and Medicare tax for a worker “serving on a temporary basis in case of fire, storm, snow, earthquake, flood, or other similar emergency.” This exception applies only for temporary workers hired in response to an unforeseen emergency. It does not apply to firefighters who work on a recurring, routine or regular basis, even if their work involves situations that may be considered emergencies, including responding to fires.

[TaxGuyBill]

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@GingerU wrote:

I'm not sure  where or how to report it, The Internal Revenue Code provides an exception under IRC 3121(b)(6)(C) from social security and Medicare tax for a worker “serving on a temporary basis in case of fire, storm, snow, earthquake, flood, or other similar emergency.” This exception applies only for temporary workers hired in response to an unforeseen emergency. It does not apply to firefighters who work on a recurring, routine or regular basis, even if their work involves situations that may be considered emergencies, including responding to fires.

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So this is a firefighter, employed by the government?

Were the wages entered on their W-2?

[qbteachmt]

"I'm not sure where or how to report it"

What is it that is the subject, here? Are you the same person who started this topic?

Really, details sure help those peer users on the internet that have no idea what you are asking about.

[GingerU]

I did not post the original question, however, I do have a client that worked as a volunteer firefighter during an emergency...she was paid via a 1099-NEC.  In her case, her volunteering is not regular (she lives out of town, but came to help out).  So I'm wondering if she would qualify under this exception to the SE tax.

[GingerU]

I was only responding to an earlier question by someone else (same thread)

[rcooley25]

I am  authority on fire ball whiskey.

In my opinion who ever told your client that or perhaps the client them self has been consuming a little too much of my favorite drink.

[qbteachmt]

"provides an exception under IRC 3121(b)(6)(C)"

Per Cornell:

"(6) service performed in the employ of the United States or any instrumentality of the United States if such service is performed—

...

(C) by any individual as an employee serving on a temporary basis in case of fire, storm, earthquake, flood, or other similar emergency;"

"I do have a client that worked as a volunteer firefighter during an emergency...she was paid via a 1099-NEC"

Well, that seems settled, then.