When does a post-retirement payout from employer require a W2 instead of 1099-MISC?

[keith-kaniut]

The 1099-MISC from my old employer (I retired in 2018) was for a lump-sum payout from an investment fund used to pay employees who stay with the company more than 10 years. TurboTax wants to classify this as wages requiring a W2. And/Or require me to file a form SS-8. 

[HelenaC · Accepted solution]

To enter this income so it does not generate Schedule C Profit or Loss from Business, follow these instructions:

1. Sign in to TurboTax .
2. Search for 1099-misc other income.
3. Select the Jump to 1099-misc link in the search results.
4. Select Yes to Did you get a 1099-MISC?
5. If you need to enter another 1099-MISC, select Add Another 1099-MISC to enter a new one.
6. Enter the information from your 1099-MISC.
7. If your form has an amount in more than one box, you’ll need to enter them as separate 1099-MISC forms. We’ll help you with that.
8. On the Describe the reason for this 1099-MISC screen, enter a reason then Continue.
9. On the Does one of these uncommon situations apply? screen, select None of these apply then Continue.
10. On the Did the XXX involve work that’s like your main job? screen, select No, it didn’t involve work (wages) like my main job then Continue.
11. On the How often did you get income from XXX? screen, select I got it in 2018 then Continue.
12. On the Did the XXX involve an intent to earn money? screen, select No, it didn’t involve an intent to earn money then Continue.

You can view your 1040 form before you e-file by switching to Forms Mode. See  How do I switch to Forms Mode in the TurboTax for Windows software?