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who paid the award? if it was your employer they should have included it on your w-2 and taken out the various taxes. the issue then becomes is it worth possibly risking your job if you go back to them and request that they reissue the w-2 showing the award. if they won't your choices are to pay the self-employment taxes or file form 4852 to report the payment as wages. filing 4852 will probably cause issues with your employer
if it didn't come from your employer and you performed no services for the payee, you can not use the form1099-misc. it must be entered as misc income on line 11 of schedule 1
Your employer should have reported it on your W-2.
Since they did not, you have to report it as self-employment income.
Because it is compensation for services, it is subject to self-employment, (Social Security) tax.
Just answer the questions as if you were self-employed in your W-2 occupation and worked out of your home.
As an alternative, you can use the method described by Opus 17, below:
[Edited 07/07/2020|10:30 PST]
@RobertG wrote:
Your employer should have reported it on your W-2.
Since they did not, you have to report it as self-employment income.
Because it is compensation for services, it is subject to self-employment, (Social Security) tax.
Just answer the questions as if you were self-employed in your W-2 occupation and worked out of your home.
I disagree. I believe that when you enter the 1099, there is a list of special circumstances and one of them is "my employer should have reported this money on my W-2." That will prepare a substitute W-2 form and you will pay 7.65% social security and medicare tax instead of 15% self-employment tax.
Your employer is required to report anything of value that you receive as compensation for your work on your W-2, including prizes, awards and incentives. (Unless the item falls into a category of allowable tax-free fringe benefits. Awards are not eligible for tax-free fringe benefits unless they are small and meet certain defined rules, in which case you should not get a 1099 either.)
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