These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. Regardless of whether it is paid to you by your state/local government, or by your employer, payment of a cash bonus to new employees is in the nature of compensation for services and thus is not a qualified disaster relief payment under section 139 of the Code. Teachers and principals also will be eligible to receive a one-time, $1,000 disaster relief payment. Overall, 68 of Floridas 74 school districts (92 percent) now have a starting salary of $40,000 or higher. The disaster relief payments were provided to full-time Pre-K certified teachers funded by the FEFP, K-12 classroom teachers, and principals. Additionally, 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. (Employers may also have to pay federal unemployment tax on the wages.) Florida's Assessment of Student Thinking (FAST) using Star Early Literacy, Gold Seal Quality Care Program for Parents, Florida's Early Learning & Development Standards, Preschool Development Grant Birth through Five. WebDuring the 2021 Legislative Session, Governor Ron DeSantis worked with the Legislature to secure $1,000 disaster relief payments for educators by appropriating funding through the General Appropriations Act (GAA). Having great teachers makes a difference. A A Florida taxpayers will be paying millions of dollars to mail out bonuses to teachers and first responders. Please consider subscribing to our daily newsletter, text alerts and our YouTube channel. The Division of Early Learning (formerly the Office of Early Learning) will be hosting webinars beginning Thursday, July 8, 2021, to provide more information. More information about reliance is available. One exclusion is for qualified disaster relief payments under section 139 of the Internal Revenue Code (Code). The application for the second payment opens Saturday, January 1, 2022. For these individuals, state payments will not be included for federal tax purposes 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. Monroe: 1111 12 Street, Suite 1-206 Key West, FL 33040 - Phone: (305) 296-5557, 2022 Early Learning Coalition of Miami-Dade/Monroe, Get a personalized list of early care and education providers, Voluntary Prekindergarten Program Assessment, Donotreply_disasterrelief@oel.myflorida.com. (added November 17, 2021), Treasury Inspector General for Tax Administration, Frequently asked questions forstates and local governments on taxability and reporting of payments from Coronavirus State and Local Fiscal Recovery Funds. The information below pertains to Floridas PK-12 educator disaster relief payments. Maryland Response Pay Educators Florida Child Care and Early Learning Disaster Relief payments Florida Qualified Disaster Relief Payments for teachers Under section 139 of the Internal Revenue Code, qualified disaster relief payments are generally not gross income for tax purposes and are not reportable as income on a federal income tax return. The payment is available to an eligible individual after he or she completes four weeks of paid employment. A1: Yes, you must include the payment in gross income as compensation for services. 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. A3: Yes. If I pay such a cash bonus to my employees, must I withhold income and employment taxes on that payment? Principals employed by a district or a charter school that serves PK-12 students as of June 2, 2021, or on the last day of school. The Division launched two application cycles for Child Care and Early Learning Instructor Disaster Relief Payments. To qualify for the payment, a family must only show that it has a child under 18. Thank you Governor Ron DeSantis for these bonuses., We are so proud of the work our teachers have done over the last year, innovating every step of the way, saidSenator Kelli Stargel. Thanks to the tireless efforts of our teachers and school leaders Florida succeeded where so many other states failed. If I receive a payment under this program, must I include it in my gross income? Directors will See section 139(b)(1) and (4). 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. FLORIDA, USA If youre a qualifying teacher or first responder you shouldve received your $1,000 pandemic bonus check by now. (added November 17, 2021), Q8: We are a state/local government that uses SLFR Funds to provide a direct cash transfer to families. In fact, the school successfully improved its school grade from an F to an A between 2019 and 2021. Almost 177,000 Disaster Relief Payments of up to $1,000 will be distributed to Floridas educators in recognition of their hard work to educate students in the 2020-2021 school year. In Florida, more than 170,000 teachers will receive a $1,000 check and the cash is likely to be For a list of the specific payments to which this applies, please see this chart. Thanks to the diligent efforts of Floridas educators, Florida was the first state in the nation to reopen schools for in-person instruction. 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. It is surprising that the DOE would not agree with us that a $1,000 disaster relief payment is reasonable and necessary, argued Christina Pushaw, the Florida governors press secretary, in a comment to the Wall Street Journal. A Form 1099-MISC reporting the payment would be required if the payment constituted income to the recipient. 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. Rather, the payment is taxable as compensation income. As such, they are considered qualified disaster relief payments under section 139 of the Code and are excluded from gross income. Thank you Governor Ron DeSantis for these bonuses., We are so proud of the work our teachers have done over the last year, innovating every step of the way, saidSenator Kelli Stargel. 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. See section 139(b). Teachers in some states have received stimulus checks worth up to $1,000 as lawmakers wanted to recognize their work during the Covid-19 pandemic Credit: Getty. Although all students need world-class educators in the front of classrooms, students especially in need are students with disabilities, those with food insecurities and those in need of mental health or who are suffering from abuse at home. My thanks also go to Speaker Sprowls, Senate President Simpson, Senator Stargel, and Representative Trumbull for their leadership during the 2021 legislative session to make this funding a reality., Governor DeSantis has proven once again that Florida is the Education State,said Commissioner of Education Richard Corcoran. Governor Ron DeSantis and the Florida Legislature authorized two qualified disaster relief payments to child care and early learning See section 139(b). Considering how challenging the past year was for teachers, we knew it was important to recognize and reward them for their hard work, said Governor Ron DeSantis. 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. Each qualifying family receives a flat amount under the program. Considering how challenging the past year was for teachers, we knew it was important to recognize and reward them for their hard work, said DeSantis. A12: No. If you do not receive an invite by Wednesday, July 7, 2021, please email disasterrelief@oel.myflorida.com or call toll-free at 1-833-258-6735. These payments are made by a state/local government and are intended to pay for family expenses resulting from the COVID-19 pandemic, a qualified disaster. Educators Eligible for Disaster Relief Funds, Executive Office of Governor Ron DeSantis. Maryland Maryland gave eligible residents payments of $500 for families and $300 for individuals who filed for the earned income tax credit. Premium pay amounts paid to employees are considered wages. Great teachers, great principals and great administrators lead directly to better outcomes for Floridas students, and I was proud to join some great teachers at Lakewood Elementary today to hand them $1,000 bonuses., Educators Eligible for Disaster Relief Funds, Almost 177,000 Disaster Relief Payments will go to Florida teachers. As such, they are considered qualified disaster relief payments under section 139 of the Code and are excluded from gross income. They have had to make so many adjustments and have worked so hard to make sure every child has a chance to learn. Payments started in November and will continue through the end of 2021. Each qualifying family receives a flat amount under the program. 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 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. Thank you for your continued commitment to serve Floridas children and their families. My thanks also go to Speaker Sprowls, Senate President Simpson, Senator Stargel, and Representative Trumbull for their leadership during the 2021 legislative session to make this funding a reality., Governor DeSantis has proven once again that Florida is the Education State,said Commissioner of Education Richard Corcoran. Additionally, 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. Alaska is in this group as well, but please see below for more nuanced information. The IRS is aware of questions involving special tax refunds or payments made by certain states related to the pandemic and its associated consequences in 2022. Please call 1-800-4FED-AID (1-800-433-3243) for information about relief TALLAHASSEE, Fla. Today, Governor DeSantis handed out the first of nearly 177,000 Disaster Relief Payments of up to $1,000 to Floridas educators in recognition of their hard work to educate students in the 2020-2021 school year. 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. Learn More . Accordingly, these FAQs may not address any particular taxpayer's specific facts and circumstances, and they may be updated or modified upon further review. At the event, Governor DeSantis recognized Brittany Duquaine and Lynn Price as outstanding educators at the school who have contributed to the schools incredible turnaround. (added November 17, 2021), Q14: We are a utility company that uses SLFR Funds to pay overdue utility balances on behalf of individuals. Under section 139 of the Code, certain payments made by a state or local government to individuals in connection with the COVID-19 pandemic may be qualified disaster relief payments that are excluded from the recipient's gross income. 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