Wages earned from United Nations

[JSK]

I have a situation where the taxpayer is employed by the United Nations.  He is currently living in NY.  He received a statement showing his earnings, and instructions that the wages are taxable as wages, and not self-employment.  The statement is not a W-2.  It simply shows the amount to pick up as taxable.  There are no other taxes withheld.  The instructions go on to explain that they will be reimbursed for their taxes upon submitting their returns to the UN in order to keep the pay "fair" for those who work for the UN and live in areas without tax against their income.  My question is how do I report this in proseries?  There is no EIN for the UN, nor is their an address on the statement.  Does anyone have experience in reporting earnings from the UN?  Any help will be greatly appreciated.

[JOFI]

You should enter the wage amounts on the "Other Wages" form.  

[JSK]

I was able to get more details from the client - I do have an EIN they provided in a separate letter.  Basically what I need to do is report it as wages (the instructions specifically say line 1a).  However, I also have to calculate social security and medicare tax that was not withheld.  I used Form 8919, but that will then put wages on line 1g, which I thought would be ok.  My client wants it on 1a because that was where he was told it had to be.  Is there any way to get the wages on line 1a, and calculate his portion of social security and medicare that was not withheld from his wages.  Instructions specifically say not to pick it up on Sch C, as they are only responsible for half the ss and medicare tax that was not withheld.  I appreciate any and all suggestions.

[JSK]

I was able to get more details from the client - I do have an EIN they provided in a separate letter.  Basically what I need to do is report it as wages (the instructions specifically say line 1a).  However, I also have to calculate social security and medicare tax that was not withheld.  I used Form 8919, but that will then put wages on line 1g, which I thought would be ok.  My client wants it on 1a because that was where he was told it had to be.  Is there any way to get the wages on line 1a, and calculate his portion of social security and medicare that was not withheld from his wages.  Instructions specifically say not to pick it up on Sch C, as they are only responsible for half the ss and medicare tax that was not withheld.  I appreciate any and all suggestions.

[sjrcpa]

1a was "last year"

[JSK]

Thank you.  So am I correct in entering it on line 1g along with form 8919?

[sjrcpa · Accepted solution]

I think you use Schedule SE instead of the 8919 in this situation. I haven't had this in a while - definitely not since they changed the forms.. I'll defer to @itonewbie 

[JSK]

I don't think I would use SE because the client is not responsible for both halves of the social security or medicare tax.  The instructions the client received specifically said not to report wages on Schedule C, and it is not subject to self employment tax.  He is only responsible for his half of the social security and medicare had wages been reported on a W-2 and the taxes were withheld.

I appreciate all your help.  Thank you for responding.

[JSK]

Thank you for your help!  We do need to complete SE form.  My client was able to reach someone at the UN to help with this.  He knew he was only responsible for half the social security and medicare, but he has since been informed that he will file the SE form, and the UN will reimburse him for 1/2 the tax.

Thank you again, I truly appreciate you taking the time to help with this.  Now I'll know what to do next year with his UN wages!

[itonewbie]

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@JSK wrote:

Thank you for your help!  We do need to complete SE form.  My client was able to reach someone at the UN to help with this.  He knew he was only responsible for half the social security and medicare, but he has since been informed that he will file the SE form, and the UN will reimburse him for 1/2 the tax.

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Exactly.  This is how the process works.