Re: income resulting from dispute

[helpwithtaxes]

Re: income resulting from dispute

What is the name of your state?NC

Thank you for your response. My husband was not self-employed. He was an employEE of the company and received salary plus commissions thru a North American office (a subsidiary of the European company). He was wired money for the disputed commissions by the European headquarter office. We are not sure how to claim this money on our taxes.

 

[LdiJ]

What is the name of your state?NC

Thank you for your response. My husband was not self-employed. He was an employEE of the company and received salary plus commissions thru a North American office (a subsidiary of the European company). He was wired money for the disputed commissions by the European headquarter office. We are not sure how to claim this money on our taxes.

Ok....first he needs to be certain that the money wasn't included in his W2. It should have been. Even though the money was sent directly from the European headquarters it still should have been reflected in the W2.

If it definitely was NOT included in the W2, then he basically has two choices.
He can demand a corrected W2 from the American office....or he can treat the money as self-employment income. If he treats it as self employment income then he is going to be responsible for the employer share of the SS and Medicare taxes (approx 7.685%).

I suspect that the company isn't going to be too cooperative about providing a corrected W2 since the whole thing was disputed to start with. This wouldn't happen to be an Italian company would it?