topic Received 1099 MISC for final pay check in Get your taxes done using TurboTax

Received 1099 MISC for final pay check

sr3333 — Wed, 02 Apr 2025 03:29:15 GMT

I received 1099 MISC from my employer. this is for my final pay. in CA they are required to issue a final paycheck.

However this final paycheck was gross amount: there was not taxes, federally or state, and for medicare and Social Security.

How do i enter this final paycheck in TT desktop MAC?

Re: Received 1099 MISC for final pay check

Vanessa A — Wed, 02 Apr 2025 12:36:53 GMT

You should never receive a 1099-Misc or 1099-NEC from your employer for income earned as an employee, even if it is your final pay. They are still required to pay the employers share of taxes and withhold your Medicare and SS taxes. You should contact your employer and ask them to make the correction.

If they do not, you will need to enter your income by selecting the following:

Income
Show More next to Less Common Income
Start next to Misc Income
Start next Other income not already reported on a form W-2 or Form 1099
Yes to did you receive any other wages
Continue through to did you earn any other wages and answer yes
Select employee compensation that was not reported on a W-2
Hit continue
Report your wages and select I received a 1099-Misc for this income use reason code H

Myths About Misclassification

Re: Received 1099 MISC for final pay check

sr3333 — Thu, 03 Apr 2025 01:50:21 GMT

@Vanessa A

After calling the HR from your response. The 1099 MISC is not final paycheck.

it is penalty that my employer had to pay for not providing me the final paycheck on time, within the California Labor code.
I have confirmed that the employer is required to give this penalty to me and without me having to pay taxes.
how do I record this.?

it turned out to be non-taxable 1099 MISC

Re: Received 1099 MISC for final pay check

ThomasM125 — Thu, 03 Apr 2025 22:53:40 GMT

I'm not sure about it not be taxable, at least for federal tax purposes. In any case you need to report it in the Wages and Income section, then Other Common Income, then Income from Form 1099-MISC. To have it not be considered self-employment income, you may need to indicate that it wasn't earned in the previous or next year, was not associated with your job and you did not have a profit motive associated with it.

To exclude the income from taxation, assuming you know that to be true, you need to enter a negative entry to "Other Income" to cancel out the income as follows:

1. From the Federal menu in TurboTax find Wages and Income

2. Find Less Common Income

3. Choose Miscellaneous Income, 1099-A, 1099-C

4. Choose Other Reportable Income

5. Enter a description of the adjustment and the amount as a negative number