Business & farm

@Deano_Bambino67 

No.  And unfortunately, the expert is wrong as well, although no one caught it.

 

A sign on bonus should be reported on a W-2 as wages, and should be subject to income tax and employment tax withholding, because it is compensation for work performed, even though that work will be in the future.   There is a way to fix this in Turbotax, using either form SS-8 or a substitute W-2 form, depending on when the bonus was paid.  If the bonus was paid in 2023 and the employee started work in 2023 and recieved a w-2, then use form 8919 with code H.   If the bonus was paid in 2022 but the employee started work in 2023 and did not receive a W-2 for 2022, use form 4852 substitute W-2 form.

 

(However, in either case, first contact the employer and ask them to issue a corrected W-2.  Give them the chance to fix the mistake.)