Since it's from your employer, it really should be on your W2 with the correct withholding taken out for social security and medicare tax. I would start by requesting a corrected W2. If you get nowhere with that request, I would enter it as Other Reportable Income under the Miscellaneous Income section.
Follow these steps:
- Sign in to TurboTax,
- Click on Federal Taxes at the top of the screen;
- Go to Wages and Income;
- Toward the bottom, you will see a box to click that says Add More Income.
- Scroll down the page to the last section titled: Less Common Income and click show more;
- Select start or update next to the last topic titled Miscellaneous Income, 1099-A, 1099-C;
- Scroll down to the last option titled Other reportable income and select Start or Edit;
- Click Start next to Other income not already reported on a Form W2 or Form 1099;
- Click YES to Did you receive any other wages;
- Continue past Wages earned as a Household Employee, Sick or Disability Pay, Medicaid Waiver Pay and select YES again to the question Any Other Earned Income?
- Select Employee Compensation that was not reported on a W2;
- Continue answering all questions. The Reason Code you should use is H;
- Then click Done.
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