Feb 5, 2010

1099s

Attorneys and others who receive fees paid directly by Social Security for representing Social Security claimants have been receiving 1099s this week that are supposed to show the monies they were paid by Social Security in 2009. The comment heard from almost everyone receiving one of these 1099s is that it shows significantly less gross income than it should, perhaps 20% to 35% less. This is no big deal since it will not cause any tax problems for anyone but, still, it is something that should be fixed. I have heard speculation that the 1099s are not including fees paid in Supplemental Security Income (SSI) cases, that they do not include fees paid on dependent benefits or that only fees authorized by Social Security's Office of Central Operations are included. I expect that someone at Social Security knows the explanation. Can anyone enlighten us?

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