1099NEC

[jjkim1]

I had 1099NEC income from my previous employer.

This was a fully vested 'bonus' that was paid out after I quit.

So it is not from self employment, as I did not provide any services for this income

Should this be considered as 'wages - line i(g)'. or in line 8 as other income?

If other income, should I be responsible for 'self-employment' tax on this income?

Thanks.

[DianeW777]

It depends.  If you have a W-2 from this same employer, you should report the income as wages using the method below. This allows you to report the payment as wages and pay only your employee share of social security and medicare tax. The IRS will go back to the employer for the employer share of the same taxes.

• What is Form 8919-Uncollected Social Security Medicare Tax on Wages?

The bonus will be included in the total wages on Form 1040 line 1. On the dotted line to the left of the amount on line 1 there will be a notation "F8919" and the amount. Form 8919 will be included in the return, with reason code H in column (c). Form 8919 will calculate the Social Security and Medicare taxes that your employer should have withheld from the bonus. The total of these taxes will appear on Schedule 2, line 6,  and will be included in your total tax liability.

1. Click the Federal Taxes tab. (In TurboTax Self-Employed or Home & Business click the Personal Tab.)
2. Click Wages & Income. (In TurboTax Self-Employed or Home & Business click Personal Income.)
3. Scroll all the way down to the last section "Less Common Income." Click the Start button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."
4. On the next screen click the Start button for "Other income not already reported on a Form W-2 or Form 1099."
5. The next screen asks "Did you receive any other wages?" Select Yes and click Continue.
6. The next two screens ask about household employee wages and sick or disability pay. Click Continue on these two screens without entering anything.
7. The next screen asks "Did you earn any other wages? Select Yes and click Continue.
8. The next screen asks the source of the other earned income. Select "Employee compensation that was not reported on a W-2."  Ignore the note that says not to enter compensation for which you will receive a 1099. Click Continue.
9. On the next screen, "Employee Compensation Not Reported on a W-2," click Continue.
10. If you are filing a joint return, you will get a screen asking which one of you the income is for. Select your name and click Continue.
11. On the next screen, "Report Your Wage Income," enter the employer's name and EIN from your W-2. When entering the EIN, you must enter the hyphen after the first two digits. For Total Wages Received, enter the amount on the 1099-NEC. Select Reason Code H. Click Continue.
12. On the next screen, "Report as Wages," click  Done.
13. This returns you to the Miscellaneous Income screen. Click Continue.

[jjkim1]

Thanks for the reply.

I do not have W2 from this company in 2023.   I left the company in March 2022. The 1099NEC is for a deferred bonus that I was fully vested to receive but the actual payment happened in 2023 Oct.   So should this be considered a wage and the previous employer should have issued a W2?  I think 1099NEC is correct, but not sure if it should considered as a wage on my 1040, and whether associated self-employment taxes should be incurred.  Or should it just be added as 'other income' with no self employment taxes.  I did not technically have any work done for this previous employer in 2023, and was working for another company and received W2.  Thanks for your insight. 

[DMarkM1]

According to the IRS here, the amount paid is special pay treated as wages in the year received. It should have been reported on a W2.  You should follow @DianeW777 steps (repeated below) to enter the amount that should have been reported on a form W2.  

"The bonus will be included in the total wages on Form 1040 line 1. On the dotted line to the left of the amount on line 1 there will be a notation "F8919" and the amount. Form 8919 will be included in the return, with reason code H in column (c). Form 8919 will calculate the Social Security and Medicare taxes that your employer should have withheld from the bonus. The total of these taxes will appear on Schedule 2, line 6,  and will be included in your total tax liability.

1. Click the Federal Taxes tab. (In TurboTax Self-Employed or Home & Business click the Personal Tab.)
2. Click Wages & Income. (In TurboTax Self-Employed or Home & Business click Personal Income.)
3. Scroll all the way down to the last section "Less Common Income." Click the Start button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."
4. On the next screen click the Start button for "Other income not already reported on a Form W-2 or Form 1099."
5. The next screen asks "Did you receive any other wages?" Select Yes and click Continue.
6. The next two screens ask about household employee wages and sick or disability pay. Click Continue on these two screens without entering anything.
7. The next screen asks "Did you earn any other wages? Select Yes and click Continue.
8. The next screen asks the source of the other earned income. Select "Employee compensation that was not reported on a W-2."  Ignore the note that says not to enter compensation for which you will receive a 1099. Click Continue.
9. On the next screen, "Employee Compensation Not Reported on a W-2," click Continue.
10. If you are filing a joint return, you will get a screen asking which one of you the income is for. Select your name and click Continue.
11. On the next screen, "Report Your Wage Income," enter the employer's name and EIN from your W-2. When entering the EIN, you must enter the hyphen after the first two digits. For Total Wages Received, enter the amount on the 1099-NEC. Select Reason Code H. Click Continue.
12. On the next screen, "Report as Wages," click  Done.
13. This returns you to the Miscellaneous Income screen. Click Continue."