Hello,
My father is retired....long retired (he's 80). Each year is receives a "Christmas Bonus" from his union (~4 to 5 thousand dollars). Each year it has been sent on a 1099 - MISC form. The amount does not have any taxes withheld when it is paid out.
In the past I have found that entering the 1099 results in 2 different scenarios. Scenario one has it taxed at a pretty high amount (for example it has changed his amount owed to federal from zero to ~$1500 owed. Scenario 2 results in about $900 owed if I do it according to a previous post I found here that treats the money as a bonus and not earned income.
https://ttlc.intuit.com/community/taxes/discussion/i-received-a-christmas-bonus-on-a-1099-misc-as-ot...
This year the form came in as a 1099-NEC. So upon entering the money this year and following the prompts, I am stuck trying to figure out the amount truly owed. I am getting prompts about business expenses and such. It's a bonus, from the union, not from any work he did at all recently. So I get that it may/should be taxable... but I am unsure how much of it is truly required to be taxed, if any should his income be so little given he receives social security and a small pension. It seems like it is being treated similar to the scenario one situation when it was a 1099MISC.
I hope I am asking/making things clear. I do not really know much about taxes, short of being able to do the step by step stuff in turbo tax. Any guidance would be appreciated.
