I have a similar issue, except that the employer issued a separate 1099-NEC for the imputed amount. This was NOT an informational notice. It is clearly a 1099-NEC filed with the IRS. When I try to input the form into TurboTax it automatically tries to create a Schedule C for me, but this is not self-employment income. If this amount was added to the salary on W-2 as imputed income, then the amount will be taxed twice (actually worse because it'll include self-employment tax).
Near as I can figure I shouldn't follow TurboTax down that "rabbit hole" to create a business and should file the Form 8919 to report that the employer did not include the imputed income as they should have. This may help relieve any penalty as the domestic partnership medical benefit was very large. Am I wrong here? Does the employer have the option to add to W-2 income and send a Form 1099-NEC placing the extra burden on the employee? Seems off because their representation that this is income to a non-employee is factual incorrect.
