topic If the work, by me was done in 2023 or earlier and the finished project was paid out in 2024 how should I answer for my participation? in Get your taxes done using TurboTax

If the work, by me was done in 2023 or earlier and the finished project was paid out in 2024 how should I answer for my participation?

beingmitchells — Tue, 03 Feb 2026 11:56:37 GMT

We had a patent bonus that was paid out after the design was deemed worth pursuing a patent, and an additional bonus after a patent was received. All the work I did on the design was completed in 2023.

Re: If the work, by me was done in 2023 or earlier and the finished project was paid out in 2024 ...

Vanessa A — Mon, 10 Feb 2025 21:20:44 GMT

Where do you see this question?

If the question is asking if you participated when it comes to a 1099 that you are entering, then if you did the work, even in a prior year, the answer would be yes.

Re: If the work, by me was done in 2023 or earlier and the finished project was paid out in 2024 ...

beingmitchells — Mon, 10 Feb 2025 23:06:40 GMT

This is from a 1099-NEC. I know it is not related to gambling or transportation. I'm just not certain if the first or the last option applies.

The question as listed in Turbo Tax says:

Tell us if any of these less common situations apply to this work

Select all that apply to Engineering work.

I didn't actively participate in the operation of this business. Learn more

I am subject to Department of Transportation hours of service limits. Learn more

This business has income related to professional gambling. Learn more

None of these apply.

Re: If the work, by me was done in 2023 or earlier and the finished project was paid out in 2024 ...

DianeW777 — Mon, 10 Feb 2025 23:18:00 GMT

It depends. This income must be reported on Schedule C for self employment unless you were paid wages from the same company. If you were not an employee, then this is income from your services. Use the link below to report your income. You actively participated in the operation of this business.

How do I report income from self employment?

If your employer reported your bonus on a 1099-NEC you have two options to report the income.

Option 1:

Search (upper right) > Type 1099nec > Click the Jump to... Link
Enter the document received and you must indicate it did involve your services like a main job by answering yes.
Likewise answer based on whether it involved an intent to earn money, which in your case it did.
Using the 'Learn More' links may be helpful.

Option 2: This is correct, however your employer will not be pleased.

If you are still working for the same employer and you believe they should be paying the employer share of social security and medicare taxes then you have a second option to report the bonus on a W-2 by completing a conventional paper return and using substitute W-2 (Form 4852).

Open or continue your return and search for W-2. Select the Jump to link in the search results to go to the W-2 entry screen.
Fill out your W-2 using the information from your pay stub.
Answer any questions until you get to Let's check for uncommon situations.
Check the box next to Didn't get a W-2 and select Continue.
On the Let's check if you need a substitute W-2 screen, select Yes then Continue.
Answer the follow-up questions. Select Print to download and print your IRS Form 4852.

Note: Returns including Form 4852 can't be e-filed because of IRS regulations.

@beingmitchells