Bonus reported on 1099-NEC. W-2 & 1099 have different EINs. How do I report on taxes?

[AColwart]

BACKGROUND INFORMATION

• I worked for a company, as a W-2 employee during 2023.  I received a W-2 for wages earned.
• The company was sold during 2023 and I received a large bonus after the company was sold. 
• I received a 1099-NEC for the bonus.  The Payer’s name/TIN on the 1099-NEC is different than the W-2.   

QUESTION – HOW DO I REPORT THE BONUS (1099-NEC) ON MY TAXES?

When I add the 1099-NEC, TurboTax ask me to fill our a Schedule C and put in information about my “business”.  I do not own a business. 

I understand with 1099-NEC compensation I am responsible for playing the employer portion of FICA taxes.  I’m okay with that --- not trying to skirt it.  Just trying to get this right.

Irrelevant to the question, but important because I don’t want to cause any issues.  The company that purchased my old company hired everyone --- including the owner of the company that was sold.  He is still my boss.

[DMarkM1]

You are correct in entering each form (W2 and 1099-NEC) exactly as your forms read.  There will not be an issue with different employer identification numbers on the different forms.  You are also correct in that the 1099-NEC is subject to self-employment taxes (employer and employee portions of social security and medicare taxes).

The 1099-NEC is, as you surmise, non-employee compensation which by default is self-employment income.  Therefore when entering the 1099-NEC you will be asked about your self-employment business.  You do not need to enter a business name or address if they are you and your address.  As for the type of business just enter what services you performed for the 1099-NEC issuer.  

You will then be able to tie the 1099-NEC income to that self-employment business.  Also, if you had paid any expenses when performing those services you can enter those to offset some of the income; for example, uniforms and license fees.  Look through the list of expenses provided in TurboTax to help guide you.