How do i show a 1099 misc (other income) as a Christmas Bonus not as a business

[1950katherine]

When I put 1099 Misc (Other Income) for a Christmas Bonus, it also shows up in business.  This is not a business.  How do I get it out of the business area?

[PatriciaV · Accepted solution]

It depends. If this was the only payment you received from this company, and they didn't hire you or withhold taxes, the IRS considers you to be self-employed. In this case, you report your income and expenses on Schedule C.

See these articles for more help:

• Beginner's Tax Guide for the Self Employed 
• Tax Tips for the Self-Employed

If, however, you received a W-2 from this company, and you believe the employer should have reported on your bonus on the W-2, you may enter the 1099-MISC as employee wages and not as self-employment income. Note that you will need to report the employer to the IRS on a special form.

To revise your entries for Form 1099-MISC, return to the Other Income section (search on "1099-misc") and edit the 1099 you have already entered.

On the page "Does one of these uncommon situations apply?" check the box for "This was a bonus....from my employer" (see screenshot below - click to enlarge). Follow the prompts to report this as employee wages and prepare the Form SS-8 to report the oversight to the IRS.

[balabay]

There is no line for this was a bonus, prize, etc... on TT Deluxe.  How do I avoid a Schedule C?