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valkraus
New Member

I received a 1099-NEC for a benefit that was given to me as part of being laid off. How do I file this correctly as none of the answers given fit my situation?

TurboTax is pushing self-employed route, which is wrong.  I am just trying to figure out the correct way to file.  Do I answer the “should have been on a W-2”?
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1 Reply
JohnB5677
Expert Alumni

I received a 1099-NEC for a benefit that was given to me as part of being laid off. How do I file this correctly as none of the answers given fit my situation?

If this 1099-NEC is a severance package or back wages of some kind, you are correct.  When entering the 1099-NEC you will come to the question:

  • Does one of these uncommon situations apply?
  • "Your" employer reported this extra money on a 1099-NEC, but it should have been reported on a W-2.

You will be subject to self-employment taxes.

The self-employment tax rate is 15.3%. That rate is the sum of 12.4% for Social Security and 2.9% for Medicare.

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