turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
turbotax icon
turbotax icon
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Withholding for bonus income provided directly by a customer

I work a regular W-2 job.  As part of my duties, I support one of our clients when he puts on events.  Following each of his events, he likes to give out bonuses himself instead of routing them through my employer, which results in me receiving a 1099 from him at the end of the year (I guess it's actually a 1099-NEC and not a 1099-K; though he's been using an app to distribute the money for the last couple years, so I wasn't sure until I checked right before posting this).  I've been adjusting my W-4 withholding to account for the additional income, but what's the correct way to handle this situation?

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions

Withholding for bonus income provided directly by a customer

Adjusting your withholding is fine if it covers what is considered your self employment income. That income is taxed at 15.3 percent in addition to your regular marginal tax rate. 

View solution in original post

2 Replies

Withholding for bonus income provided directly by a customer

Adjusting your withholding is fine if it covers what is considered your self employment income. That income is taxed at 15.3 percent in addition to your regular marginal tax rate. 

Withholding for bonus income provided directly by a customer

Okay, thanks!

Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question

Related Content

Manage cookies