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Did you get a form for it? Like a 1099Misc? It probably should be included on your W2. What benefits did you get?
After I talked with my previous provider, they told me that I need to have 1095-b or 1095-c which they sent me into the mail. I got a benefit separation when I got laid off from my previous job.
1095-B and1095- C are for health insurance. That is a benefit and you should get the form. Those do not need to be entered on your tax return. If you had any other benefits and need help, let us know.
That's weird because I paid over 1000$ for taxes from the separation benefits(not related to health benefits although I got laid off because of COVID). I would assume you will need to write them in your tax return. I will wait for their letter that they sent me about those benefits.
@antonmakov wrote:
That's weird because I paid over 1000$ for taxes from the separation benefits(not related to health benefits although I got laid off because of COVID). I would assume you will need to write them in your tax return. I will wait for their letter that they sent me about those benefits.
At this point I think we are all thoroughly confused. Did you get money, or pay money? If you paid money, what did you buy with it? (Goods or services or something else.)
I got money to my checking account. I got it like any other of my paychecks.
@antonmakov wrote:
I got money to my checking account. I got it like any other of my paychecks.
If you were paid a separation bonus, the employer is supposed to include that on your W-2 as part of your regular wages and withhold federal and state income tax and social security and medicare tax, just as if it was regular wages. Double-check your W-2, are you sure the money isn't already included?
Some employers list separation bonuses on a form called a 1099-NEC. If the employer used an outdated and incorrect form it might be a 1099-MISC with the income in box 7. Any taxes withheld would also be listed on the 1099. If you have a 1099-MISC or 1099-NEC we can tell you how to properly add the income to your W-2.
If your employer really told you that you need a 1095-A or 1095-C, then they misunderstood your question, or you misunderstood their answer. A 1095-A would be sent to you if you enrolled in a Marketplace health plan, it is sent by the Marketplace, not your employer. A 1095-C is sent by your employer and provides information about the value of any insurance that was provided to you as an employee benefit. Most of the time, if you have employer-sponsored insurance, you just put the 1095-C with your other papers and it doesn't go on your tax return or have anything to do with taxes or wages.
If your employer is reporting the bonus on a 1099-MISC or 1099-NEC that they mailed you, you need to wait for it to arrive. Then we can tell you what to do.
After talking with another representative today he ensured me that the separation benefits that I received last year were already included in my W2 form.
Thanks all for your replies and your patience, it was not clear at the beginning but everything is sorted out now.
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