How do I report a Company Bonus received on a 1099-MIsc.

[rat_rust]

My employer gave me a bonus and reported on a 1099-Misc and not on my W-2 how do I put this on my tax return

[view2 · Accepted solution]

BONUS: 1099 Box 7.[Probably should have been box 3]

You received this form instead of Form W-2 because the payer did not consider  this to be reportable as  regular wages [or other reasons] and did not withhold income tax or social security and Medicare tax.

Click the "tools" lower left and  then in the pop up use "  'topic  search"  and type 8919 then click "go"

Report any other taxable income here. This includes wages, bonus pay, severence pay, or benefits from an employer received but not reported on a W-2. Be sure to only include amounts that are not or will not be reported on a W-2  .

Other Wages Received "YES"

Continue to "Any Other Earned Income" "YES"

Follow prompts from that screen.

Report as Wages

This income is taxable and will be reported as wages on your return.

Turbotax will make sure that the appropriate form is included with your completed return.

Follow the prompts and read screens carefully to report this income correctly.

Enter this in the "Any Other Earned Income" section of Turbotax where wage information you enter here will flow to Form 1040, Line 7 and the taxes calculated will flow to Form 1040, Line 57b. DO NOT enter the wage information a second time in the program by entering the actual Form 1099 or a Form W-2 in the Q&A, as this would double the income in the return.

Turbotax will use Form 8919 to figure and report your share of the uncollected social security and Medicare taxes due on your compensation if you were an employee but were treated as an independent contractor by your employer.

When you proceed through Turbotax interview screens with proper selections Turbotax  will generate the necessary forms[Form 8919] and will show as attached on the 1040 wage line.

[lctaylor86]

I have a simular situation but my company reports seperate company names on the w2 and 1099 so how would I do this?

[mercyllanos]

I have the same situation. My employer paid the bonus using different company from w-2. How to report it?

[woodricky]

Mark S  was very helpful and professional.

He explained our moves clearly.

I am very satisfied

Rick [phone number removed]

[poster1010]

Hi  - were you able to solve this issue when the employer paid the signing bonus before you were technically and employee using a separate company (not the company that paid you the W-2 income once employed)?

[mturner_71]

Why would you answer a question with an automatic assumption as your first statement.  NO, we received BOTH a W2 AND a 1099-MISC...   The bonus was merely provided on the 1099-MISC.    How is a common taxpayer supposed to work with this??

[LenaH]

If bonuses are reported on a 1099-MISC, then you will still need to pay the uncollected Social Security and Medicare tax, as well as the income tax. This could be why it might be populating under a Schedule C and adding self-employment tax (which will end up being your portion of the Social Security and Medicare on this income). 

The IRS classifies bonuses as supplemental wages, along with severance pay, taxable fringe benefits, vacation pay, back pay, and overtime. Supplemental pay is anything other than your regular pay.

Typically, bonuses are added to a W-2. However, there are different withholding methods for supplemental wages that the employer can consider, which are discussed in IRS Publication 15.

Per the IRS, regardless of the method employers use to withhold income tax on supplemental wages, supplemental wages are subject to Social Security and Medicare taxes. 

@mturner_71

@rat_rust

@lctaylor86

@mercyllanos