If you received a 1099-NEC, I assume you did not pay any Federal, State, Medicare, or Social Security tax on your sign-on bonus. While the IRS may not consider bonuses regular wages, they are still regarded as supplemental wages and are subject to Federal, State, Medicare, and Social Security taxes. Although you're not self-employed, the self-employment entry allows you to enter the income, and the calculation occurs for Federal, State, Medicare, or Social Security tax. To enter into TurboTax, you will follow these steps:
- Click Wages and Income
- Scroll Down to Self-Employment Income
- Click Start next to self-employment income and expenses
- Click Add another line of work
- Fill out interview questions
For more information on how bonuses are taxed, see the link below:
How are bonuses taxed?
@phillyfan11
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