PattiF
Expert Alumni

Get your taxes done using TurboTax

This is considered self-employment income. The company that gave the bonus to you reported it on a 1099-MISC instead of a W-2 where bonuses are usually reported. 

 

If you received a 1099-MISC, 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. 

Since the company issued you a 1099-MISC, you can write off expenses related to the income received.  Were there any travel expenses related to getting the job?

 

 

Please see this from TurboTax How are Bonuses Taxed?

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