ThomasM125
Expert Alumni

Get your taxes done using TurboTax

Since the bonus came from your employer it represents compensation, which is taxable for income as well as social security tax purposes. However, you are not self-employed so technically are not subject to self-employment tax, even though it goes to social security just like if it was subtracted from wages.

 

You can report the income as wage income not reported on a W-2 form. You can do this in TurboTax by entering the bonus in the Wages and Income section, then Less Common Income, then Miscellaneous Income, 1099-A, 1099-C. Choose the category Other Income not already reported on a Form W-2 or Form 1099. This will result in the social security tax being added to your income tax, so you won't need to report the income as self-employment income.

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