1099-MISC for unused sick time

[MAJ]

I have a first --
Client retired from teaching and had unused sick time.
She received a lump sum check for the stick time in the amount of $8,828.62 on a 1099-MISC.

Box 18 - State income - $8,828.62 is the only box with any entries.

What to do? This one has me stumped. Eveything I read {and thought I knew} says that It's income/wages - subject to normal withholding on all parts. The fact that she's no longer an employee is of no matter. They should re-issue as a W-2.

But, please tell me if I'm wrong! She's insistent it's a buy back of sick time.
Note: Pension is from State of NJ if that has any value at all.

Thanks in adavance.

[ChEAr$]

First

I have a first --
Client retired from teaching and had unused sick time.
She received a lump sum check for the stick time in the amount of $8,828.62 on a 1099-MISC.

Box 18 - State income - $8,828.62 is the only box with any entries.

What to do? This one has me stumped. Eveything I read {and thought I knew} says that It's income/wages - subject to normal withholding on all parts. The fact that she's no longer an employee is of no matter. They should re-issue as a W-2.

But, please tell me if I'm wrong! She's insistent it's a buy back of sick time.
Note: Pension is from State of NJ if that has any value at all.

Thanks in adavance.

`have you and client reconciled W2 information with last pay stub for year? Is there
perhaps an 8826 difference on W2 of box 1 and state wages?

Also you say above "box 18 - state income ... etc... i don't know there is a box 18
on a 1099-misc form. Maybe so; just haven't looked lately.

but of course you're right, it IS wages, both state and federal. My first guess is that the W2 was
issued and instead of correcting it, somebody decided to simply use the 1099misc form instead.

[taxea]

Look up the rule, print it out, give it to the client and have her/him take it to the former employer and request they correct the 1099 to all zero's and issue a W-2. If it applies.taxea