@Chriszjl wrote:
Both the severance pay and cobra compensation were given at the same year of separation. In the separation agreement, they specifically mentioned that a 1099 will be issued to the cobra payment.
Just because the employer said so, doesn't make it correct. However, health insurance could be handled differently than severance. Without some specific research, I can't tell you that the employer was definitely wrong to not put the insurance on the W-2, only they may have been wrong.
I do agree that if the employer is correct that this is not counted as "compensation" for your services, then it is not self-employment and should be reported as miscellaneous income. However, if the employer was incorrect and this should have been counted as "compensation", then it would be added to your W-2, and also not be reported as self-employment.
