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Discussion Forum Index --> Basic Tax Questions --> Flex Spending
Discussion Forum Index --> Tax Questions --> Flex Spending
Taxestaxes (talk|edits) said:
| 2 April 2008
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| Have a client who received a 1099 for the amount he was paid from his flex spending? Is this right? Should it be treated as a sched c? Have not saw this before-ever!?
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Natalie (talk|edits) said:
| April 2, 2008
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| Did he opt to take part of the funds out in cash?
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Jctmstx (talk|edits) said:
| 2 April 2008
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| Sounds like the use it or lose came into play. Pretax funds not used are not deductible so they probably issued a form 1099 to offset the deduction from taxable income.
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Taxestaxes (talk|edits) said:
| 2 April 2008
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| I just spoke with him again to confirm, he says its where his wife has her own insur. thru her employer, so he gets this money for not using it by having her on his plan.....so basically he got the money, but do I treat it as sched c? thanks.
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Natalie (talk|edits) said:
| April 2, 2008
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| No, client is not running a business. The W2 should have been adjusted. I would report it as other income.
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Taxestaxes (talk|edits) said:
| 2 April 2008
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| Thanks, thats my opinion, just wanted to hear from someone else.
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