How to report strike pay on a 1099-MISC form during tax filing?
Hey everyone, I participated in my first union strike last summer for about 2 months. Now that tax season is here, I'm confused about how to handle my paperwork. My employer sent me a normal W-2 for the time I worked, but the union gave me a 1099-MISC with the strike pay listed in box 3. There wasn't any tax withheld from these payments. I'm not sure how to file this correctly. Do I just treat it like any other 1099-MISC income? Do I need to specifically indicate it was strike pay somewhere, or is the fact that it came from the union sufficient explanation? I'm worried about how this will be taxed - will the IRS consider this self-employment or contractor income? I'm using OnLine Tax software through the IRS free file program. Any advice would be really appreciated! This is my first time dealing with strike pay and I don't want to mess up my taxes.
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Marcus Williams
Strike pay is a bit unique but not too complicated to handle. The 1099-MISC with the amount in Box 3 is correctly categorized as "Other Income" which is exactly what strike pay is considered to be by the IRS. You'll report this on Schedule 1, Line 8z (Other Income) of your Form 1040. You can write "Strike Pay" on the dotted line next to it. The good news is that strike pay is not considered self-employment income, so you won't have to pay self-employment tax on it. However, it is subject to regular income tax. When using OnLine Tax through the free file program, there should be a section for "Other Income" or "Miscellaneous Income" where you can enter this. The software should guide you through entering 1099-MISC information and will ask which box the income is reported in.
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Lily Young
•Thanks for explaining! So just to be clear, I don't need to file a Schedule C for this? And should I be setting aside money for next year's taxes since there was no withholding? Also, does the union typically report this to the IRS or do they just send the 1099 to me?
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Marcus Williams
•You're absolutely right - no Schedule C is needed since strike pay isn't self-employment income. It's simply "other income" that goes on Schedule 1. Since there was no withholding, you might want to set aside roughly 15-25% depending on your tax bracket to cover the taxes due. The union does report this to the IRS - that's the whole purpose of the 1099-MISC form. The union sends a copy to both you and the IRS, so the income is already on the IRS's radar.
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Kennedy Morrison
I went through something similar last year when our factory went on strike. After struggling with figuring out how to handle the tax situation, I found this AI tool called taxr.ai that saved me a ton of stress. You can upload your 1099-MISC and W-2 forms to https://taxr.ai and it analyzes them to show you exactly where to report everything. The tool confirmed what was mentioned above - strike pay goes on Schedule 1 as "Other Income" and isn't subject to self-employment tax. It also gave me personalized guidance for my specific situation since I had some union dues and other strike-related expenses that might be deductible. Definitely worth checking out if you're using the free file software and want some extra guidance!
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Wesley Hallow
•Did you find it actually gave you different advice than what's available online? I'm always skeptical of these tax tools because I feel like they just repackage the same generic info you can find on IRS.gov for free.
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Justin Chang
•How does this handle state taxes? My union strike last year crossed over two states (we picketed at multiple locations), and I'm wondering if that complicates things.
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Kennedy Morrison
•It definitely gave me more specific advice than generic online searches. The difference is it analyzes your actual documents and gives personalized recommendations based on your complete tax situation rather than just general advice about one form. For state taxes, it handles multi-state situations really well. It examines where the income was earned and helps allocate it correctly across different state returns. In your case with picketing in multiple states, it would help determine if you need to file multiple state returns or if it all counts as income from your home state.
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Justin Chang
Just wanted to follow up - I tried the taxr.ai site that was mentioned and it actually worked great for my situation! I uploaded my W-2 and the various 1099 forms I received (including strike pay from two different states). The analysis showed me exactly how to report everything and even identified some deductions related to my union activities that I was eligible for. The tool explained that my strike pay should be reported as "Other Income" but doesn't get hit with self-employment tax. It also clarified that I only needed to file in my home state since the temporary picketing in another state didn't establish tax residency. Saved me from unnecessarily filing multiple state returns! Really helpful for my complicated situation.
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Grace Thomas
If you're having trouble getting answers from the IRS about how to handle this situation, I highly recommend using Claimyr. I was in the same boat last year with strike pay questions, and kept getting the "due to high call volume" message when trying to reach the IRS. I used https://claimyr.com and they got me connected to an actual IRS agent in about 15 minutes instead of waiting for hours. You can see a demo of how it works here: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone tree and wait on hold for you, then call you when an agent is on the line. The IRS agent confirmed everything about how to report strike pay and answered all my specific questions. Especially helpful since my situation had some complications with partial year employment and strike benefits.
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Hunter Brighton
•Wait, so you're saying this service somehow gets you through the IRS phone queue faster? How is that even possible? Seems like it would just be the same wait time but on someone else's phone instead of yours.
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Dylan Baskin
•Does this actually work? The IRS phone system is notoriously awful - I tried calling 8 times last year and never got through. If this actually works it would be a lifesaver.
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Grace Thomas
•It doesn't magically skip the queue - they wait in line just like anyone else would. The difference is they have systems to navigate the complex IRS phone tree and stay on hold so you don't have to. When an agent finally answers, they connect you directly. Yes, it absolutely works! That's the whole point of the service. They have dedicated systems to stay on hold with the IRS for hours if necessary. I was skeptical too but after trying to get through myself for days, I gave it a shot and had an IRS agent on the phone within 20 minutes. You just go about your day until they call you when an agent is ready.
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Hunter Brighton
I have to eat my words about Claimyr. After posting my skeptical comment, I decided to try it myself since I had some questions about a tax notice I received. I figured it wouldn't work, but I was desperate after trying to call the IRS myself multiple times. To my complete surprise, I got a call back in about 30 minutes saying they had an IRS agent on the line! I was able to get my question about some strike pay from 2023 resolved in one call. The agent confirmed exactly what others have said here - report it as Other Income on Schedule 1, and no self-employment tax applies. They also helped me with the notice issue. I'm still shocked it actually worked. Saved me hours of frustration and repeated calls.
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Lauren Wood
Just a heads up for union workers - make sure you're also tracking your union dues for the year! While the 2017 tax law suspended miscellaneous itemized deductions, there are still some situations where union members can deduct certain expenses. For example, if you're a qualified performing artist, fee-basis state or local government official, or eligible educator, you might be able to deduct some union expenses. Also, if you're in a state with state income tax, check your state's rules. Some states still allow deductions for union dues even though the federal government doesn't.
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Lily Young
•Is there any way to deduct expenses related to being on strike? I had to drive to the picket line every day and even bought supplies for signs. Can those be written off somehow?
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Lauren Wood
•Unfortunately, strike-related expenses like transportation to the picket line, supplies for signs, or food during picketing are generally not tax-deductible. These are considered personal expenses rather than business expenses. The same applies to most union dues for regular employees - they're not deductible on your federal return under current tax law. However, definitely check your state tax rules as some states do allow deductions for union dues and even certain job-related expenses that the federal return doesn't permit.
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Ellie Lopez
Has anyone used OnLine Tax for strike pay before? I'm in the same boat this year and wondering if there are any specific screens or fields I need to look for. I started entering my info but got confused when it asked about the source of income.
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Marcus Williams
•I used OnLine Tax last year for this exact situation. When you get to the income section, look for "Less Common Income" or "Other Income" (the wording changes slightly each year). Then select the option for 1099-MISC. When it asks for which box contains the income, you'll select Box 3. There should be a field where you can type in a description - just put "Strike Pay" there. The software handles it correctly from that point. Just make sure you don't accidentally enter it as self-employment income or you'll end up paying unnecessary SE tax.
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Ellie Lopez
•Perfect, that's exactly what I needed to know! I found the "Less Common Income" section and was able to enter it correctly. It did try to guide me toward Schedule C at first but I made sure to categorize it as Other Income instead. Thanks for the help!
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AstroAdventurer
Great discussion here! I'm dealing with a similar situation from a strike I participated in last fall. One thing I want to add for anyone else reading this - make sure to keep good records of exactly when you received your strike pay versus your regular wages. In my case, the strike crossed over from December into January, so some of my strike pay will be reported on this year's taxes even though the strike started last year. The 1099-MISC shows the total amount paid in the tax year, not when the strike actually occurred. Also, if you received any strike benefits in addition to strike pay (like help with utilities or groceries from the union), those might be handled differently for tax purposes. My union provided some emergency assistance during the strike, and I'm still trying to figure out if that needs to be reported as income too. The advice about setting aside 15-25% for taxes is spot on - I learned that the hard way when I got hit with a bigger tax bill than expected!
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