Notifications can be turned off anytime in the browser settings. As such, they are considered qualified disaster relief payments under section 139 of the Code and are excluded from gross income. These heroes are the backbone of our communities and today the Governor sent a clear message that Florida loves and appreciates their hard work and dedication. Section 139 of the Code excludes qualified disaster relief payments from an individual's gross income, but payments in the nature of compensation for services are not treated as qualified disaster relief payments. 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. 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. A Form 1099-MISC reporting the payment would be required if the payment constituted income to the beneficiary. While other states kept their schools closed, Florida opened them up and allowed students to return to normalcy. If I receive such a payment, must I include the amount in my gross income? Accordingly, these FAQs may not address any particular taxpayer's specific facts and circumstances, and they may be updated or modified upon further review. Premium pay is in the nature of compensation for services and therefore is not excludable as a qualified disaster relief payment. Questions about this program can be sent to DisasterRelief@del.fldoe.org. %PDF-1.5 % Payments started in November and will continue through the end of 2021. (added November 17, 2021), Q14: We are a utility company that uses SLFR Funds to pay overdue utility balances on behalf of individuals. If you are performing services as an employee, whether as an employee of the state/local government or another entity, the premium pay is also generally considered wages and is subject to withholding of applicable taxes. 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. 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 Your assistance in confirming eligible child care and early learning instructors, along with their mailing addresses, quickly and accurately, is needed in order to ensure these payments are provided to all eligible individuals. If I pay such a cash bonus to my employees, must I withhold income and employment taxes on that payment? TALLAHASSEE, Fla.Today, Governor Ron DeSantis was joined by teachers, school principals, and superintendents in Baker County, Sarasota County and Okaloosa County to announce a total of $765 million in funding to support Floridas teachers. A9: No, this payment is not included in gross income. Opening our schools last year was the right decision and teachers throughout the state were on the front lines of getting Floridas education system back on track. These payments are made by a state/local government on behalf of individuals to pay for personal expenses incurred during the COVID-19 pandemic, a qualified disaster. Part-time teachers can receive up to $500. This material may not be published, broadcast, rewritten, or redistributed. Teachers are the heart of our community and have always gone above and beyond to put the needs of students first. Hawaii Gov David Ige has also vetoed a bill planning "thank you" payments for teachers in his state. The application for the first qualified disaster relief payment is CLOSED. Employers generally must withhold federal income tax as well as social security tax and Medicare tax from employees' wages. Auxiliary aids and services are available for individuals with disabilities. These investments include $550 million to continue elevating minimum teacher salaries, as well as $215 million to provide all of Floridas eligible public school principals and teachers with $1,000 disaster relief payments. Miami-Dade: 2555 Ponce de Leon Blvd. 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. WebFederal relief. 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. A1: Yes, you must include the payment in gross income as compensation for services. TALLAHASSEE, Fla. (AP) Republican Gov. 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. Applications for the first bonus shall be available no later than July 1, 2021 Applications for the second bonus shall be available no later than January 1, 2022. Teachers and principals may also be eligible for disaster relief payments of up to $1,000. These payments are made by a state/local government to individuals and are intended to pay for personal expenses incurred during the COVID-19 pandemic, a qualified disaster. Governor DeSantis held the event at Lakewood Elementary School in Pinellas County. If you are performing services as an employee, the premium pay is also generally considered wages and is subject to withholding of applicable taxes. BAKER COUNTY (CBSMiami) It's official. Regardless of whether an amount is paid to you by your state/local government, or by your employer, a payment that is in the nature of compensation for services is not excludable as a qualified disaster relief payment under section 139 of the Code. This means that people in the following states do not need to report these state payments on their 2022 tax return: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island. We have to remember that Florida has millions of highly vulnerable students and they have been the students most at risk the entirety of the time. Instead, contact this office by phone or in writing. A variety of state programs distributed these payments in 2022 and the rules surrounding their treatment for federal income tax purposes are complex. Governor Ron DeSantis and the Florida Legislature authorized two qualified disaster relief payments to child care and early learning These investments include $550 million to continue elevating minimum teacher salaries, as well as $215 million to provide all of Floridas eligible public school principals Copyright 2021 Scripps Media, Inc. All rights reserved. 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. A8: No. Ron DeSantis highly touted plan to give teachers and principals $1,000 bonuses using federal COVID-19 relief funds could be in trouble after the state was informed that extra pay appears to Nonetheless, a taxpayer who reasonably and in good faith relies on these FAQs will not be subject to a penalty that provides a reasonable cause standard for relief, including a negligence penalty or other accuracy-related penalty, to the extent that reliance results in an underpayment of tax. Michigan also made $500 hazard pay grants available to teachers. For a list of the specific payments to which this applies, please see this chart. As a federally declared disaster, the COVID-19 pandemic is considered a qualified disaster for purposes of section 139. | Suite 210 - Coral Gables, FL. An official website of the United States Government. (added November 17, 2021), Q2: My employer received a grant from my state/local government to be used to provide premium pay to eligible workers during the COVID-19 pandemic. 850-717-9282 While in general payments made by states are includable in income for federal tax purposes, there are exceptions that would apply to many of the payments made by states in 2022. We understand that you want to recognize all hard-working staff, such as custodians, food service workers, bus drivers, etc., who sacrificed much of their own time and personal expenses to ensure that child care providers remained open to serve Floridas children and families. These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. Throughout the school year, Lakewood Elementary experienced exemplary in-person participation and is a shining example of a school succeeding in School Turnaround. The Division of Early Learning (formerly the Office of Early Learning) will be hosting webinars beginning Thursday, July 8, 2021, to provide more information. Having great teachers makes a difference. 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. As of writing, these payments dont extend to pre-K educators, but this may change in the near future. Teachers and principals also will be eligible to receive a one-time, $1,000 disaster relief payment. Please call 1-800-4FED-AID (1-800-433-3243) for information about relief Before sharing sensitive information online, make sure youre on a .gov or .mil site When similar bonuses were issued in states like Georgia and Michigan, the payments were taxed. But a memo to the general counsel of the Florida Department of Education says the checks could be considered qualified disaster relief payments rather than bonuses. Give Light and the People Will Find Their Own Way. Section 80B in the GAA provides: The funds provided in Specific Appropriation 80B are provided to the Office of Early Learning to administer two bonuses to Floridas child care and early learning instructors totaling a net amount of $1,000 each. These payments will be provided directly to qualified individuals through the U.S. mail. Eligible Individuals: The following persons are eligible for a $1,000 payment under Senate Bill I am so grateful that their dedication is being honored and rewarded.. To qualify for the payment, a family must only show that it has a child under 18. The SLFR Funds provide substantial flexibility for each government to meet local needsincluding support for households and individuals hardest hit by the crisis. 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. Each qualifying family receives a flat amount under the program. The IRS has reviewed the types of payments made by various states in 2022 that may fall in these categories and given the complicated fact-specific nature of determining the treatment of these payments for federal tax purposes balanced against the need to provide certainty and clarity for individuals who are now attempting to file their federal income tax returns, the IRS has determined that in the best interest of sound tax administration and given the fact that the pandemic emergency declaration is ending in May, 2023 making this an issue only for the 2022 tax year, if a taxpayer does not include the amount of one of these payments in its 2022 income for federal income tax purposes, the IRS will not challenge the treatment of the 2022 payment as excludable for income on an original or amended return. To assist taxpayers who have received these payments file their returns in a timely fashion, the IRS is providing the additional information below. The payment is intended to assist with childcare costs resulting from the COVID-19 pandemic. These payments are made by a state/local government on behalf of individuals to pay for personal expenses incurred during the COVID-19 pandemic, a qualified disaster. Do we have an obligation to file a Form 1099 or other information return with respect to the payment? 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. If the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit (for example, because the $10,000 tax deduction limit applied) the payment is not included in income for federal tax purposes. If I receive such a payment from my employer, must I include the amount in my gross income? Determining whether payments qualify for these exceptions is a complex fact intensive inquiry that depends on a number of considerations. Using federal funds, both Georgia and Tennessee offered $1,000 bonuses to full-time teachers and $500 to part-time teachers. 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. Salaries for the Disaster Relief will be influenced by many factors. See section 139(b). endstream endobj 153 0 obj <. A payment by a state or local government generally will be treated as a qualified disaster relief payment under section 139 if the payment is made to or "for the benefit of" an individual to (1)reimburse or pay reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a qualified disaster, or (2) promote the general welfare in connection with a qualified disaster. 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 beneficiary. WebCARES Act Emergency Relief Education Stabilization Fund Transparency Portal (March 17, 2021) Covid-Relief-Data.ed.gov is dedicated to collecting and disseminating data and information about the three primary ESF programs that the Coronavirus Aid, Relief, and Economic Security (CARES) Act authorized and the Department manages. 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. 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. %%EOF A qualified disaster relief payment does not constitute wages subject to income tax withholding and social security tax. A A Florida taxpayers will be paying millions of dollars to mail out bonuses to teachers and first responders. During a review, the IRS determined it will not challenge the taxability of payments related to general welfare and disaster relief. Available to teachers and first responders related to general welfare and disaster relief will be influenced by many.! 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