- The income should be reported as "Other income" by you.
- His employer shouldn't have issued a W-2, it should have been a 1099-MISC.
- His employer shouldn't have withheld any taxes. If there were any taxes withholding, you should reclaim it from the employer.
- Ask his employer to reissue a 1099MISC instead. If he refuses to do so, hold onto this W2 so that if an issue arises in the future, it can be explained.
Finally, to enter this in TT, Go into Wages & Income, scroll down to the bottom where it says Misc. Income, than scroll down to the bottom where it says "Other reportable income", type in the description "Bonus
Income with the amount.
[Edited 01/29/2024|1:50 pm PST]
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