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OHIO WORKERS’ COMPENSATION STIMULUS PAYMENTS ARE A TAXABLE GRANT NOT A DIVIDEND

OHIO WORKERS’ COMPENSATION STIMULUS PAYMENTS ARE A TAXABLE GRANT NOT A DIVIDEND

Taxpayers have begun to receive 1099-Gs from the state of Ohio reporting “taxable grant” income. This is a change from their stated position that 1099-DIVs were to be printed reporting dividend income for the $8 billion of payments made from the state-run insurer to businesses. The Ohio Bureau of Workers’ Compensation (BWC) said that they were later advised that even though these amounts are referred to as dividends they aren’t actual dividends for income tax purposes. State Agents aren’t allowed to give any written guidance that may constitute tax advice, but they’re being told to advise callers that these businesses aren’t stakeholders in the Ohio BWC so the payments can’t be classified as dividends.

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