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I am on disability an not able to work any more.?

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I am on disability an not able to work any more.?

Postby williamson41 » Sun Mar 04, 2012 3:43 pm

I have am vested with Keller Williams realty and have downline which I receive profit share (passive income) I do have done NO physical work at all in over 2 years. I am disabled and not capable of working and collecting disability.
Keller Williams sent my 1099 showing my profit share downline as "income" line 7 instead of "other income" line 3. I have not done any work for keller williams in over 2-3 years but they say that my downline (people that when they joined 6 years ago named me as their sponsor) some I do not even know did not recruit them (they were recruited by someone on my downline) Keller Williams maintains that anyone on my downline that earned income even if I did nothing and do not know them they feel that is income to me also (same as if I earned the money myself) This make me pay SE tax (when I did not work) and makes it look like I lied to the state by them putting the passive profit share on line 7 of my 1099 the state will think I myself worked. How do I fix this? My tax advisor asked Keller Williams to change the profit share downline money to "other income" line. But they say they do not care how long ago (6 years) the sponsorship took place or even if I knew they were on my downline or not they feel all profit share is to go on line 7 weather I worked or not.... Is there anything I can do. I do not want the state thinking I lied when I filed for disability I have NOT worked and am not able to work. But line 7 on my 1099 makes it look like I did work.. what can I do?? Please help...
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Joined: Mon Mar 21, 2011 6:57 pm

I am on disability an not able to work any more.?

Postby yiska » Sun Mar 04, 2012 3:47 pm

You might want to post this in a 'TAX' category. I realize IRS is the government but probably get a better response there. In addition, there are several legitimate Tax sites you can ask the question and real tax experts give you answers. If you want my opinion, if you received money then it is INCOME but what do I know.
Posts: 887
Joined: Mon Mar 21, 2011 1:08 pm

I am on disability an not able to work any more.?

Postby elliston66 » Sun Mar 04, 2012 3:53 pm

or just pay the taxes since you are collecting government money even though you have an income
Posts: 891
Joined: Mon Mar 21, 2011 9:14 am

I am on disability an not able to work any more.?

Postby selwin95 » Sun Mar 04, 2012 3:59 pm

If you are getting benefits from the Social Security Administration you have nothing to worry about. Those earnings will show up on your social security earnings records and one day, far into the future, some claims rep will contact you and will ask you about them. Just tell them you didn't work but were paid from work performed before becoming disabled. That's all. It's very common with people in the real estate business. Plus, it's quite possible that those earnings will increase your monthly benefit amount. There is no downside to it.
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Joined: Mon Mar 21, 2011 11:58 pm

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