I received a 1099-MISC which contains a value only in box 3 (other income). This was due to a "discretionary transaction bonus" that was awarded to me after the sale of the company for which I worked. Should I be entering this as a 1099-MISC? The questions ask if this involved or is related to my work. When I answer yes, I believe it puts this into a Self Employment tax bracket. I guess the real question is do I have to pay social security and medicare tax on this amount in addition to my regular tax percentage (which would be a total of about 40%) or can I answer "no" to the work related question and just pay the regular tax rate for my bracket? Any help is appreciated.
