No. This would not be considered self-employment income. Vacation pay should be reported on a W-2, not a 1099 -NEC as it is subject to employer withholding/ FICA taxes.
You can report the income by selecting the following:
- Income
- Miscellaneous Income
- Other Income not already reported on a Form W-2 or 1099
- Yes, to did you receive any other wages
- Continue through until you get to Any Other Earned Income and select Yes
- Select Employee compensation that was not reported on a W-2
- Continue through answering the questions. Put a checkmark in the box that says you received a 1099-NEC
- Select letter H- I received a form 1099-NEC that should have been submitted on a W-2
TurboTax will then include form 8919 with your return for uncollected Social Security and Medicare wages. This will have you pay 7.65% which is the amount that should have been withheld, instead of 15.3 which is the self-employment amount.
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