Tax Year Prior to 2020: I resigned from my job last year and received a profit sharing check. I wanted to know how I should claim it on my taxes. Is it considered a dividend payment?

[DaveF1006]

it is not a dividend statement. How did your company report the income?  Did they send you a taxable document to report in your taxes for 2019 or was it reflected in a W2?

[Carl]

If the check was issued to you in tax year 2019 then I would expect the amount to be reported and included in box 1 of your W-2. If it's not, then you should receive a physically separate tax reporting document for that specific income. More than likely though, it's included in box 1 of your W-2.

[DaveF1006]

This is correct only if the amount of the profit sharing check is part of the wages reported in Box 1 of the W2. If this is the case, you do not need to do any additional reporting since the income is claimed in Box 1 of the W2. You may wish to verify this with your employer.

[bflorentin]

Hello Dave,

I am not sure how my company reported it. I did not receive a taxable document from them and I can't tell if the amount is reflected in box 1 on my W2.  I emailed my employer to find out if I perhaps needed a 1099-r form from them and they were unsure and told me they would get back to me.

[VictorW9]

Whatever the case may be, you more than likely have withholding against that check. It is likely that the payment would have been incorporated into your W2 at the end of the year, even if you received a separate check from the profit sharing.

[bflorentin]

Hey Victor,

Prior to my profit sharing check being cut I was able to choose how much taxes was withheld from it. I had 25% federal tax withheld and 10% state tax withheld.  So that being the case does that solidify that the earnings have been incorporated into my W2?

Thanks

[VictorW9]

I believe that the profit sharing was more than likely incorporated in your W2. However, try and confirm it with your employer if you can. It is something you can also figure out by examining your individual pay stubs. This would be easy if your wages are generally fixed from period to period and comparing your last pay stub to your W2.

[bflorentin]

Hey Victor my employer sent me a 1099-R form.  I don't see a federal ID number on it.  Do I use the Payers TIN number instead?

[Irene2805]

Yes - Use the Payer's TIN number.