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Can 1099-MISC Box 7 income that is a bonus from a former employer paid after I left the company be reported on Line 21 instead of completing Schedules C and SE?

I was a full time employee at a company that sold its business to another company in March 2017 and I went to work full time for the company that purchased the business.  In December 2017, the company that sold the business (my former employer) paid me a pro-rated bonus for 2017 and then sent me a 1099-MISC with the bonus amount in Box 7 (in addition to a W-2 for the time that I was an employee).  I'm not self-employed and this was a one time award -- can I put this on Line 21 even though it was reported in Box 7 on the 1099-MISC?

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1 Reply
Carl
Level 15

Can 1099-MISC Box 7 income that is a bonus from a former employer paid after I left the company be reported on Line 21 instead of completing Schedules C and SE?

Reporting 1099-MISC (box 3 or box 7) that is not self-employment income

Under the Wages & Income tab (or Personal Income tab) scroll down to Other Common Income and elect to start/update Income from form 1099-MISC. Then click YES to indicate you have a 1099-MISC.

Enter the 1099-MISC exactly as printed, and then Continue.

Enter the reason you got this money – be it scholarship, bonus, streaking butt naked across the 50 yard line of the super bowl, whatever. Then continue.

Select None of these apply, then Continue.

Select No, it didn’t involve work….. and Continue.

Select ONLY the tax year for which this specific 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year. Then Continue.

Select No, it didn’t involve an intent to earn money, then Continue.

Select NO, then Continue.

Click the DONE button, and that does it.


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