FYI: 1099-M Form, Just talked to state auditor's office
We got our 1099-Misc form today. When I looked at it, I thought that looks a little high for Kyle's adoption subsidy from 27 Aug 2009 to 31 Dec 2009. Good thing I checked it. It was about $700 too high. I called the state auditor's office and apparently there were a lot of errors. They are sending out a corrected 1099s in a couple of weeks.

And dh was taking our tax papers into the accountant tomorrow.
Becki-- if the new 1099 is correct & clearly states that it's not taxable income- do we have to wait on it to arrive before filing our taxes??
Wondering the same thing...^ ^ ^
Ours was about $8k too high!!

However, I'm wondering if that was factoring in the other 2 for the foster care rate. I haven't had time to do the math on that one.

ACK!!!!!!
I spoke to my accountant (my uncle.. ha) and he said that if it's not taxable income we shouldn't have to wait for the corrected sheet.. However, he wanted a copy of the amount in case it needed added elsewhere on my return... Ours is soo off it's not funny! When did the state take over our payments/ I can't recall right now.. But I have an amount ($5K) as 'other income' then a totally different amount ($10k) listed under nonemployee compensation.. No way did we make that in adoption subsidy.. WTH?! And why two different amounts listed under two different thigns? Are they trying to count foster as one? BLAH!
Well our accountant said he was gonna have to do some research on it.
After talking to my accountant more- he said that the boxes that the 'income' is currently in WILL have to be represented on our taxes.. I'm hoping the new forms will be corrected b/c I'm going to be really ticked if we have to claim this on taxes Unhappy
This is just absolutely insane. If they start making people claim the per diem as income they are going to lose a lot of foster parents.
I printed out the Tax year 2009 National Foster Parent Association Federal Tax Benefits and it is so confusing. On one page it states
Form 1099-MISC- Paymets for services performed for a trade or business by people not treated as it's employees. This form is issued to the service provider when $600.00 or more is paid during the calendar year (tax year). It also states that "If a foster parent receives taxable payments the agency issues a form W-2 or 1099-MISC to the foster parent and IRS. The income must be reported on the tax return. Consult a tax professional for the proper reporting on your tax return.
But then when you look on the next page it states "Payments received from a state, political subdivision, or a qualified foster care agency for providing care to qualified foster individuals in your home generally are not included in your income. However, you must include in your income payments received for the care of more than 5 individuals age 19 or older and certain difficulyt of care payments.

So I am really confused???
This was DCS website
■Notice to Adoptive Parents Regarding 1099

In the next few days you will receive a 1099 Misc form from the State of Indiana in regard to the adoption assistance payments you received from the state in 2009. Please note that this form was sent in error and will be corrected. None of the adoption assistance payments you received in 2009 were reported to the IRS as income. You will receive a corrected 1099 form that no longer includes the adoption assistance payments in that report.

We sincerely apologize for any inconvenience this has caused you
jolconduitt said...
This was DCS website
■Notice to Adoptive Parents Regarding 1099

In the next few days you will receive a 1099 Misc form from the State of Indiana in regard to the adoption assistance payments you received from the state in 2009. Please note that this form was sent in error and will be corrected. None of the adoption assistance payments you received in 2009 were reported to the IRS as income. You will receive a corrected 1099 form that no longer includes the adoption assistance payments in that report.

We sincerely apologize for any inconvenience this has caused you



Thank you for posting this.

Dh elaborated on what our accountant said last night. He was afraid that not only would we have to pay taxes on it as it was written but also Medicare and Social Security.

I made a copy of this and we will run it over to him the first thing Monday morning.
jolconduitt said...
This was DCS website
■Notice to Adoptive Parents Regarding 1099

In the next few days you will receive a 1099 Misc form from the State of Indiana in regard to the adoption assistance payments you received from the state in 2009. Please note that this form was sent in error and will be corrected. None of the adoption assistance payments you received in 2009 were reported to the IRS as income. You will receive a corrected 1099 form that no longer includes the adoption assistance payments in that report.

We sincerely apologize for any inconvenience this has caused you



Thank you for posting this.

Dh elaborated on what our accountant said last night. He was afraid that not only would we have to pay taxes on it as it was written but also Medicare and Social Security.

I made a copy of this and we will run it over to him the first thing Monday morning.
Well now I'm really confused.. If they are correcting them and sending them out WITHOUT our adoption subsidy on them.. what the heck would be on them?? Am I right in understanding that ONLY adoptive parents have received the original 1099, not foster parents??
Well I am a foster parent and I recieved a 1099 on Saturday. The amount shown in the box is less than half of what we were paid in per diems. The message on DCS website sounds specific to "adoptive" parents. Anybody know what the status of these 1099's are for foster parents?
Well, if we only get 1 that combines the foster and the adopted, it still wouldn't add up correctly. I know other foster parents who got the forms, but not the letter prior to that. We only got the letter re: the adopted kids, not the foster. What a stinking mess!
DCS Website has an update for foster parents & 1099s now too ::
#

Notice to Foster Parents Regarding 1099

The 1099 that foster parents recently received regarding foster care maintenance per diems was sent out in error. Foster parents will be receiving a corrected 1099 from the State that will, in all but a limited number of cases, show zero reportable income related to the foster care maintenance payments that parents have received.

In addition, at this time, no income related to foster care per diems has been reported to the Internal Revenue Service.

We sincerely apologize for any inconvenience this has caused you.
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