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How do I report a signing bonus months before I started working for the company? When I received my W-2 it was not listed, do I need them to send me a 1099-misc?

 
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Anonymous
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How do I report a signing bonus months before I started working for the company? When I received my W-2 it was not listed, do I need them to send me a 1099-misc?

There are differing opinions on whether a signing bonus should be reported on a W-2 or a 1099.  The fact they did not send you a 1099 doesn't mitigate your responsibility to report it as income.  first option, you report it on schedule C as income subject to self-employment tax.  Your other option is to reporting using Form 8919, which is used to report wage income that was not reported on a W-2. It will require you to pay your share of FICA and Medicare taxes on the payment. You will also have to prepare Form SS-8 (a request for determination on employee vs. contractor status). Realize that you will probably upset your employer, because the IRS most likely will contact them about the matter. In addition, if the IRS finds that the bonus should have gone on the W-2, your employer is likely to get hit with penalties that can be substantial.  even if the IRS finds it's not wages,  the employer can be fined for not furnishing the IRS and you with a 1099. 

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Anonymous
Not applicable

How do I report a signing bonus months before I started working for the company? When I received my W-2 it was not listed, do I need them to send me a 1099-misc?

There are differing opinions on whether a signing bonus should be reported on a W-2 or a 1099.  The fact they did not send you a 1099 doesn't mitigate your responsibility to report it as income.  first option, you report it on schedule C as income subject to self-employment tax.  Your other option is to reporting using Form 8919, which is used to report wage income that was not reported on a W-2. It will require you to pay your share of FICA and Medicare taxes on the payment. You will also have to prepare Form SS-8 (a request for determination on employee vs. contractor status). Realize that you will probably upset your employer, because the IRS most likely will contact them about the matter. In addition, if the IRS finds that the bonus should have gone on the W-2, your employer is likely to get hit with penalties that can be substantial.  even if the IRS finds it's not wages,  the employer can be fined for not furnishing the IRS and you with a 1099. 

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