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Get your taxes done using TurboTax
You are correct that it should not be reported as a capital gain.
Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2.
However, you can still report it on your tax return as employment wages by following the instructions below:
- Click the Federal tab on the left side of the screen
- Click Wages & Income
- Scroll down to see all income and click show more beside Less common Income
- Click Start beside Miscellaneous Income, 1099-A, 1099-C
- Click start beside Other income not already reported on a Form W-2 or Form 1099
- On the next screen answer Yes to Did you receive any other wages
- The next two screens relate to household employees. Click continue to move past them.
- On the next screen, answer Yes to Did you earn any other wages
- On the next screen, select Employee compensation that was not reported on a W-2. (disregard note about a 1099-misc form)
- On the next screen, click continue to reach the screen where you will report your employer's EIN and the income you received.
As for the 1099-B, you should report it with your basis equal to your bonus, so you show no gain or loss.
This question was previously answered by KatrinaB48
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March 15, 2020
12:16 PM