so totally wrong. if your employer paid you for not participating in its health insurance plan then you got compensation. it belongs on your w-2. this can create problems with your employer if you demand a corrected w-2. but you face an issue reporting the 1099-MISC from the same employer. since this is compensation it is supposed to be subject to fica and medicare taxes and thus reported on form 1099-NEC and schedule C of your return. not only do you face tax issues if you report this as income not subject to payroll taxes your employer is facing potential substantial penalties for filing a bad w-2 and 1099 and failure to withhold and pay the payroll taxes.
