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New Member
posted Apr 7, 2024 1:52:20 PM

I received a 1099 Misc from my employer. It is part of an Early Separation Agreement. How should this be entered?

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1 Replies
Expert Alumni
Apr 10, 2024 3:15:44 PM

Normally, any payment from an employer should be reported to you on Form W-2.

 

You can enter a Form 1099-MISC in the 1099-MISC section of TurboTax, taking care to answer the questions so that it doesn't get misclassified as self-employment:

 

  1. Select Income from Form 1099-MISC under Wages and Income.
  2. Enter the payer information and dollar amount
  3. Enter a description for the payment
  4. When asked about Uncommon Reasons, select that none apply or select one that adequately explains the reason
  5. When asked about the frequency of payment, select received in 2023
  6. When asked "Did (description) involve an intent to earn money?" answer No (that is, it is not earned income and therefore not subject to self-employment tax)

Form 1099-MISC is used by business payers to report certain types of miscellaneous compensation, such as rents, prizes, awards, healthcare payments, and payments to an attorney to the IRS and to the recipients of those payments.