Is Frontline worker pay earned income

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
Topic Author
Patrick584
Posts: 93
Joined: Wed Sep 06, 2017 8:38 pm

Is Frontline worker pay earned income

Post by Patrick584 »

I am specifically looking at Minnesota’s frontline worker pay. It looks like it will be federally taxable, but I can’t figure out if it is earned income at federal level.
runner3081
Posts: 5993
Joined: Mon Aug 22, 2016 3:22 pm

Re: Is Frontline worker pay earned income

Post by runner3081 »

"For federal purposes, the payment is included in federal adjusted gross income."

https://www.dli.mn.gov/sites/default/fi ... p_faqs.pdf
GenawithanE
Posts: 181
Joined: Mon Aug 26, 2019 11:14 pm

Re: Is Frontline worker pay earned income

Post by GenawithanE »

i think the OP’s question is not whether the frontline payment will be federally taxed, but whether it will be included in “earned income” which is used to qualify for the earned income credit, child care credit, and to figure how much can be contributed to an IRA.
You will know in retrospect next year based on the way your tax form from Minnesota is set up. probably will not count as earned income is my bet. if you start getting payments and they withhold social security, Minnesota is figuring that it is earned income.
Topic Author
Patrick584
Posts: 93
Joined: Wed Sep 06, 2017 8:38 pm

Re: Is Frontline worker pay earned income

Post by Patrick584 »

Correct, I’m trying to figure for federal eitc. Would the state issue 1099- misc? I think other entities had similar programs in 2021. Anyone have experience with this?
Post Reply