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MisterM70
New Member

Bonus for 1099-Misc Principle business code

I received a 1099-Misc for a year end bonus.  Turbo Tax online has me completing a schedule C for self employed income.  Is this correct and what is the principle business activity code?

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2 Replies
MindyB
Employee Tax Expert

Bonus for 1099-Misc Principle business code

A year-end bonus from your employer should not have been reported on a 1099, and you should not create a business.   

 

Instead of utilizing the 1099-MISC input and creating a business, follow these steps in TurboTax Online:

 

  1. Navigate to Federal > Wages & Income > Less Common Income > Miscellaneous Income, 1099-A, 1099-C > Start or Revisit
  2. On the next screen select Start or Revisit Other income not already reported on a Form W-2 or Form 1099
  3. The next page asks Did you receive any other wages?, choose Yes and Continue
  4. Continue through the interview until you arrive at the screen Any Other Earned Income? Choose Yes and select Continue
  5. Now, Enter source of other earned income, Employee compensation that was not reported on a W-2 and continue, ignoring note that says not to enter payments for which you will receive a 1099.
  6. Continue through the interview, at Report Your Wage Income, report the amount from the 1099-MISC, and use the information from W-2 for employer's name and EIN. Check the box  "I received a Form 1099-MISC for this income." Select Code H - I received a Form W-2 and a separate Form 1099-MISC 

MisterM70
New Member

Bonus for 1099-Misc Principle business code

I have followed your instructions and appreciate the prompt reply.

 

I have a question regarding the final step, entering the employer information from my W-2.  The W2 and the 1099-Misc have different Employers listed and EIN's.   My W2 shows Trinet (our benefits/payroll company) as the employer and the 1099-Misc shows the actual company I work for.  Do I enter the EIN information from the w-2 or 1099-Misc?

 

 

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