1099 Misc From my Employer

[DC4177]

This 1099-MISC is a little confusing? I am helping my son do his taxes for 2018. He received a W-2  and a 1099-MISC from his employer. The 1099 was received for a 1 time job he did for them, no sure why they put it on a 1099?

Any how, the question is, the amount on the 1099-MISC was $772.00. When using Turbo Tax, it made him purchase the "Deluxe" version. It then walked us through as if he was "Self Employed", which he is not? According to this article from the irs website, He should have had the option to enter the 1099-MISC income within the standard 1040 form, because he is not "Self -Employed"

https://www.irs.gov/faqs/interest-dividends-other-types-of-income/1099-misc-independent-contractors-...

If we selected that he was self-employed because of the confusion,

1. Did he actually pay a "Self-Employment" tax when he did not need to?

2. What is the best way to figure out if we should file an "Amend"?

3. Why did turbo tax make us go to a "Self Employed" section when he is not Self Employed and this is a one time payment, or did       I miss something?

[IsabellaG]

You're right, 1099-MISC is often confusing. I don't know why his employer issued a 1099-MISC for this work if he has always been a W-2 employee. It's possible that it's a mistake. But if the employer won't correct it, you can report it in TurboTax by following the screens for the 1099-MISC and indicate that it should have been reported on a W-2. Or you can indicate that this is not for work like your regular job, that it didn't involve an attempt to earn money, and that he only received it in 2018 (not prior years). That way he won't pay Self-Employment tax on the $772.00. The IRS can consider you to be self-employed whether or not you have an actual business if you've earned money in a relationship that is not employer-employee.

However, TurboTax Free Online doesn't handle 1099-MISC, and Deluxe Online is the next level up that handles this type of situation.

[taxnightmare20171099]

I have the same situation with my Employer sending me a 1099-Misc form for a reward payment.  I have the Premier version of TurboTax and it WILL NOT let me put this income in as any but money I made from a business I own.  In 2017 I had the same problem and it took multiple calls and weeks of time to figure out how to trick TurboTax into adding this income without me being self employed.  Can someone please explain how to put this income in correctly, as income from my regular employer, and not as income from a business that I don't own?

[taxnightmare20171099]

I have the same situation again this year.  I received a 1099-MISC form from my employer.  This was in addition to my normal W-2  and not included in my W-2.  The 1099 was for a cash award.  No matter what I do TT will not allow me to input this money from an employer.  TT will only let me input the 1099-MISC as a business income.  I do not own a business, this is from my only employer.  TT has known about this mistake in the software for years and does not even have a workaround that I can find.  Can someone please post the correct procedure for navigating the software maze in TT so this income can be reported correctly?

[ErnieS0]

You can enter the amount as Other income not already reported on a Form W-2 or Form 1099 (even though its on a 1099 you have not reporting it that way)

• In TurboTax Online click on Federal on the left column
• Click on Wages & Income at the top
• Scroll down to Miscellaneous Income, 1099-A, 1099-C. Start
• Choose Other income not already reported on Form W-2 or Form 1099
• Say Yes to Did you receive any other wages?
• Continue to Any Other Earned Income? Say Yes.
• On Enter Source of Other Earned Income chose Other
• Enter a description and amount. For description you can enter cash award or 1099 from XYC to show the IRS you are reporting the 1099.

The IRS says: Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2. These include prizes such as vacation trips for meeting sales goals. If the prize or award you receive is goods or services, you must include the FMV of the goods or services in your income. However, if your employer merely promises to pay you a bonus or award at some future time, it isn’t taxable until you receive it or it’s made available to you.

Refer to Bonuses and Awards in Taxable and Nontaxable Income

[poornacs]

Hi ErnieS0, can you tell how to report the numbers on 1099-MISC received for 2021? I'm in the same situation here, I have received W2 and 1099-MISC both from my previous employer.

[JulieS]

This is how to enter your 1099-MISC in the 2021 program:

1. Select Federal on the left side menu.
2. Select Income and Expenses toward upper left.
3. Expand/ scroll down the list and find the section called, Less Common Income.
4. Scroll all the way down and select Miscellaneous Income, 1099-A, 1099-C.
5. Select Other income not already reported on a Form W-2 or Form 1099
6. Answer the first question Yes.
7. Click Continue until you get to the page titled, Any Other Earned Income?
8. Answer Yes and click Continue.
9. Select Other and click Continue.
10. Enter a description and amount on this page, click Continue.

[Hal_Al]

@poornacs  It depends on why you got the 1099-Misc.  What was the money paid to you for. What did you do for it?  What expenses did it pay. Etc.