To assist taxpayers who have received these payments file their returns in a timely fashion, the IRS is providing the additional information below. I cant thank them enough for their hard work and dedication during this school year and these bonuses are a small way to say thank you on behalf of our state. In general, individuals must include in gross income any payment or accession to wealth from any source unless an exclusion applies. Premium pay is in the nature of compensation for services and therefore is not excludable as a qualified disaster relief payment. Floridas teachers deserve this recognition and I am grateful for our Governors leadership and his commitment to rewarding them., Thank you to Governor DeSantis, Senate President Simpson, Speaker Sprowls and the entire legislative body for recognizing the outstanding work of our educators and administrators, said Pinellas County Schools Superintendent Dr. Michael Grego. His exceptional leadership and bold vision has taken Floridas minimum teacher salaries to an average of $46,000, and his focus on celebrating and elevating our educators is unparalleled. Payments from the following states in 2022 fall in this category and will be excluded from income for federal tax purposes unless the recipient received a tax benefit in the year the taxes were deducted. The law also requires that any money left in the disaster relief payment fund at the close of the 2022-2023 fiscal year be returned to the General Fund. Do we have an obligation to file a Form 1099 or other information return with respect to the payment? The bonus checks that Governor DeSantis proposed, and secured from the Legislature, means a lot to these educators, our first responders and their families who endured through this crisis with them. Governor DeSantis worked with the Florida Legislature to fight for continued funding to support Floridas teachers through the Florida Leads budget, and for the $550 million to continue to raise minimum teacher salaries represents an additional $50 million over last years historic $500 million investment. Having great teachers makes a difference. To qualify for the payment, a family must only show that it has a child under 18. 152 0 obj <> endobj WASHINGTON The Internal Revenue Service provided details today clarifying the federal tax status involving special payments made by 21 states in 2022. of Education 2023 . The IRS has determined that in the interest of sound tax administration and other factors, taxpayers in many states will not need to report these payments on their 2022 tax returns. Teachers in some states have received stimulus checks worth up to $1,000 as lawmakers wanted to recognize their work during the Covid-19 pandemic Credit: Getty. TALLAHASSEE, Fla. (WTXL) Governor Ron DeSantis and Education Commissioner Ed Corcoran handed out the first Disaster Relief Payments to teachers on Wednesday in St. Petersburg. The pandemic payments made possible through funds from the CARES Act started going out in August to hundreds of thousands of teachers, principals, firefighters, police officers and other first responders. Regardless of whether it is paid to you by your state/local government, or by your employer, payment of a cash bonus to new employees is in the nature of compensation for services and thus is not a qualified disaster relief payment under section 139 of the Code. Full-time K-12 classroom teachers employed in a district or at a charter school as of June 2, 2021, or on the last day of school; Certified prekindergarten teachers employed in a district or at a charter school as of June 2, 2021, or on the last day of school, and who are funded by the Florida Education Finance Plan (FEFP); and. Do we have an obligation to file a Form 1099 or other information return with respect to the payment? My thanks also go to Speaker Sprowls, Senate President Simpson, Senator Stargel, and Representative Trumbull for their leadership during the 2021 legislative session to make this funding a reality., Governor DeSantis has proven once again that Florida is the Education State,said Commissioner of Education Richard Corcoran. Having great teachers makes a difference. The application for the first qualified disaster relief payment is CLOSED. If you do not receive an invite by Wednesday, July 7, 2021, please email disasterrelief@oel.myflorida.com or call toll-free at 1-833-258-6735. (added November 17, 2021), Q5: My employer received a grant from my state/local government to be used to pay new employees a cash bonus. If I receive such a payment under this program, must I include it in my gross income? Get the latest information on news, events, and more, All rights reserved to Florida Dept. If I receive such a payment, must I include the amount in my gross income? Payments from the following states fall in this category and the IRS will not challenge the treatment of these payments as excludable for federal income tax purposes in 2022. More than 75,000 instructors received a $1,000 check in thefirst round of disaster relief paymentsthat concluded October 30, 2021 and over 86,000 instructors received a $1,000 check in thesecond round of disaster relief paymentsthat concluded April 30, 2022. The designation allows first responders to receive the full $1,000 without employment taxes having to be withheld, which is allowable under Section 139 of the Internal Revenue Code, spokesperson Andrew Nixon said in an email to 10 Tampa Bay. A12: No. But theres still one question our VERIFY team continues to get: Will taxes be owed on these payments? WebThe Disaster Relief I salary range is $49,657 to $77,665 in Ojai, California. A spokesperson for Floridas Department of Economic Opportunity said the state had, in fact, designated these payments as qualified disaster relief. Maine We cannot stress enough the importance of keeping any correspondence that arrives with your check and the importance of discussing these funds with a tax professional, said spokesperson Joni Branch. However, payments made to or for the benefit of an individual are not treated as qualified disaster relief payments to the extent the expense of the individual compensated by such payment is otherwise compensated for by insurance or otherwise. The application for the second payment opens Saturday, January 1, 2022. Directors will (added November 17, 2021), Q10: We are a state/local government that uses SLFR Funds to provide a direct cash transfer to individuals for use in paying their utility bills. One exclusion is for qualified disaster relief payments under section 139 of the Internal Revenue Code (Code). See section 139(c). See section 139(b)(1) and (4). Additionally, payments made to or for the benefit of an individual are not treated as qualified disaster relief payments to the extent the expense of the individual compensated by such payment is otherwise compensated for by insurance or otherwise. A13: No, this payment is not included in gross income. Maryland Response Pay Educators Florida Child Care and Early Learning Disaster Relief payments Florida Qualified Disaster Relief Payments for teachers (added November 17, 2021), Q12: We are a state/local government that uses SLFR Funds to pay utility bills on behalf of individuals. Monroe: 1111 12 Street, Suite 1-206 Key West, FL 33040 - Phone: (305) 296-5557, 2022 Early Learning Coalition of Miami-Dade/Monroe, Get a personalized list of early care and education providers, Voluntary Prekindergarten Program Assessment, Donotreply_disasterrelief@oel.myflorida.com. I would like to thank Governor DeSantis and Speaker Sprowls for their tireless leadership in securing this well-deserved $1,000 bonus for the heroes in Floridas classrooms., FDOE Press Office In addition to these webinars and in an effort to assist with any questions you receive, the Division of Early Learning will post Frequently Asked Questions (FAQs) in the coming days. While other states kept their schools closed, Florida opened them up and allowed students to return to normalcy. Other payments that may have been made by states are generally includable in income for federal income tax purposes. Governor DeSantis worked with the Florida Legislature to fight for continued funding to support Floridas teachers through the Florida Leads budget, and for the $550 million to continue to raise minimum teacher salaries represents an additional $50 million over last years historic $500 million investment. In this case, because the payment is not income, no Form 1099-MISC or other information return is required to be filed with the IRS or furnished to the recipient. Any later updates or modifications to these FAQs will be dated to enable taxpayers to confirm the date on which any changes to the FAQs were made. The checks are classified as disaster relief payments, rather than bonuses, so taxes will not be withheld, according to the state. Teachers are the heart of our community and have always gone above and beyond to put the needs of students first. It is surprising that the DOE would not agree with us that a $1,000 disaster relief payment is reasonable and necessary, argued Christina Pushaw, the Florida governors press secretary, in a comment to the Wall Street Journal. A Form 1099-MISC reporting the payment would be required if the payment constituted income to the recipient. They have had to make so many adjustments and have worked so hard to make sure every child has a chance to learn. %%EOF ~ In total, checks will be delivered to nearly 177,000 Florida educators ~, Click hereto watch the full presentation. A5: Yes, you must include the payment in gross income. We might not have to deal with state income tax in Florida but most of us do still owe federal taxes on bonuses and income each year. The state of Maine is sending its residents who worked during the pandemic a one-time disaster relief payment of $285. Under section 139 of the Internal Revenue Code, qualified disaster relief payments are generally not gross income for tax purposes and are not reportable as income on a federal income tax return. Cash bonuses typically are supplemental wages for purposes of federal income tax withholding. I cant thank them enough for their hard work and dedication during this school year and these bonuses are a small way to say thank you on behalf of our state. 850-717-9282 The payment is intended to assist with childcare costs resulting from the COVID-19 pandemic. Considering how challenging the past year was for teachers, we knew it was important to recognize and reward them for their hard work, said DeSantis. However, payments are not treated as qualified disaster relief payments if the payments are in the nature of compensation for services performed by the individual. (added November 17, 2021), Q4: My state/local government is offering a one-time payment to individuals receiving unemployment compensation who accept an offer of employment within the particular state or local jurisdiction, in any industry, and discontinue claiming unemployment benefits. Alaska is in this group as well, but please see below for more nuanced information. Thank you Governor Ron DeSantis for these bonuses., We are so proud of the work our teachers have done over the last year, innovating every step of the way, saidSenator Kelli Stargel. hbbd```b``"H9 A %D2`,f;Im0V"P Dv^S@T-c%&a` ?S hn https://attendee.gotowebinar.com/register/4582056795145775371, https://attendee.gotowebinar.com/register/3960637012382579211, https://attendee.gotowebinar.com/register/8605090676340967947, https://attendee.gotowebinar.com/register/2756155009503298316, https://attendee.gotowebinar.com/register/1430665154917019660, https://attendee.gotowebinar.com/register/1777973390340776460, https://attendee.gotowebinar.com/register/6465063916201052684, https://attendee.gotowebinar.com/register/7086670615940975116, https://attendee.gotowebinar.com/register/1364836294250496012, https://attendee.gotowebinar.com/register/580158825971886604, https://attendee.gotowebinar.com/register/8738793489302344460, https://attendee.gotowebinar.com/register/4720659031920539916. My thanks also go to Speaker Sprowls, Senate President Simpson, Senator Stargel, and Representative Trumbull for their leadership during the 2021 legislative session to make this funding a reality., Governor DeSantis has proven once again that Florida is the Education State,said Commissioner of Education Richard Corcoran. While this appropriation is limited to child care/early learning instructors, you are encouraged to use a portion of your Phase V grants and future grants to ensure that these valued staff members receive the compensation and resources they need and deserve. Cash bonuses paid to new employees are wages. A9: No, this payment is not included in gross income. Principals employed by a district or a charter school that serves PK-12 students as of June 2, 2021, or on the last day of school. A qualified disaster relief payment does not constitute wages subject to income tax withholding and social security tax. Premium pay is an amount up to $13 per hour in addition to the wages or remuneration a worker otherwise receives and in an aggregate amount not to exceed $25,000 per eligible worker. WebFlorida ranks 43 rd in the nation in per student funding for education, 49 th in the nation in teacher pay and nearly half of all K-12 paraprofessionals makes less than $25,000 a year. Thank you to the Florida Legislature for heeding the Governors request to prioritize our states educators., CFO and State Fire Marshal Jimmy Patronissaid, Since day one, Floridas teachers and first responders have been on the frontlines of the pandemic, working tirelessly to protect our communities and care for our students. $ 49,657 to $ 77,665 in Ojai, California, so taxes will be. May have been made by states are generally includable in income for income! Reserved to Florida Dept: Yes, you must include the payment reporting the payment so! 1, 2022 % % EOF ~ in total, checks will be delivered nearly... 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