In 2024, my child was born, and I took “bonding” time off provided by my employer. During this period, I was fully paid by my employer, and everything appeared correct on my W-2.
Later, I received a 1099-MISC from an insurance company I don’t recognize, with income reported in “Box 3: Other income.” When I called the insurance company, they said it was related to a “bonding” claim. However, I never received any payment directly from them—they told me to contact my employer.
When I asked my employer, their only response was that they “aren’t tax advisers.”
Now I’m unsure how to handle this:
- If I report both the W-2 and 1099-MISC as-is, I’ll effectively double-report the same income and owe taxes I shouldn’t owe.
- If I don’t report the 1099-MISC, I’m worried this could flag an audit since my tax return would deviate from what’s been reported under my SSN.
What’s the correct way to handle this situation to avoid double taxation or audit risks?
