I would suggest pressing the HOA a bit. Based on the amounts involved, they should have either issued him a W-2 (probably) or a 1099-NEC (less correct, but plausible). The deadline for both of those was the end of January.
They probably don't have any sort of payroll or HR process involved if it's anything like my HOA, which is a few motivated and willing neighbors, some of whom have tax knowledge but most probably don't.
The HA probably doesn't want to issue a W-2 because then they'd have to properly fill it out and submit it to him and the IRS, which would also involve paying both halves of FICA taxes, and it costs them 15.3% of his wages to boot. So paperwork hassle, time, knowledge, and money, most of which they don't have or don't want to deal with.
You can argue with them as to whether or not he is an employee or a contractor, but that may jeopardize his job the next summer. There's an IRS resource that you can find that can guide you.
If you and he or the HOA end up treating the wages as 1099, then his compensation for IRA contribution purposes is basically his gross income of $1671 minus half of the SE taxes which works out to about $127, so $1543 or so - slightly different than the $1553; not sure why. If you go this route, I would check "Yes" to the first QBI question about being a trade in the US, unless your HOA is outside the US which would be odd.
They probably don't have any sort of payroll or HR process involved if it's anything like my HOA, which is a few motivated and willing neighbors, some of whom have tax knowledge but most probably don't.
The HA probably doesn't want to issue a W-2 because then they'd have to properly fill it out and submit it to him and the IRS, which would also involve paying both halves of FICA taxes, and it costs them 15.3% of his wages to boot. So paperwork hassle, time, knowledge, and money, most of which they don't have or don't want to deal with.
You can argue with them as to whether or not he is an employee or a contractor, but that may jeopardize his job the next summer. There's an IRS resource that you can find that can guide you.
If you and he or the HOA end up treating the wages as 1099, then his compensation for IRA contribution purposes is basically his gross income of $1671 minus half of the SE taxes which works out to about $127, so $1543 or so - slightly different than the $1553; not sure why. If you go this route, I would check "Yes" to the first QBI question about being a trade in the US, unless your HOA is outside the US which would be odd.
Statistics: Posted by secondcor521 — Sat Feb 15, 2025 10:45 pm
