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merestan
New Member

How do I report a bonus from my 1099-NEC?

My 1099-NEC lists a lump sum of what I was paid for doing some contract work. Part of this total sum is a bonus payment. How do I delineate the bonus amount from the normal payments so the right tax rate is applied to each?  
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2 Replies

How do I report a bonus from my 1099-NEC?

If the amount represents your self employment income you don’t have to separate the bonus component. It’s all self employment income. 

Hal_Al
Level 15

How do I report a bonus from my 1099-NEC?

Q.  How do I delineate the bonus amount from the normal payments so the right tax rate is applied to each?  

A. You don't delineate the two amounts.  

 

When W-2 employees are paid a bonus, or lump sum (e.g. severance) their employers are required to withhold federal tax at a higher rate.   But, at actual tax filing time, it is all taxed the same.  A higher rate may be applied to the top of the total, as the taxpayer is pushed into a higher bracket, but no distinction is made between normal wages/salary and bonus. 

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