All payments from an employer to an employee are supposed to be treated as wages and included in the employee's W-2. Why did you get a 1099-MISC from the same company where you are a W-2 employee? Employers sometimes erroneously issue a 1099-MISC for special payments such as a bonus, commission, award, or reimbursement, instead of including it in the W-2. If that's what happened, there is a way to report the extra payment correctly on your tax return, in spite of the employer's error.
The only exceptions are if you were an employee and a contractor at different times during the year, or if the 1099-MISC is for a spiff (manufacturer's incentive payment). If it's a spiff, it does not go on Schedule C. There is a special way to report spiffs.
If you were an employee and a contractor at different times, you enter the W-2 and the 1099-MISC as if they are unrelated. You enter the W-2 in the W-2 section, as you would for any other job, and you enter the 1099-MISC as business income, which will go on Schedule C.
If it's any other situation, post back with the details of what the 1099-MISC payment is for and which box of the 1099-MISC the income is in, and I will give you detailed step-by-step instructions for how to enter it correctly in TurboTax.
As a "statutory employee". I received both W2 and 1099-Misc from same employer. Box 7 (nonemployee compensation) was reported in the 1099-Misc. I have Schedule C (Copy 1) to report the W2 income, and Schedule C (Copy 2)) to report the 1099-Misc. Is it ok to report both incomes together on one single copy of Schedule C, instead of two repeated copies?
A W-2 does not get reported on any Schedule C as it is not self-employment income. It is income you received as an employee of someone else's company, and is reported under the W-2 income section.
As a "statutory employee". I received both W2 and 1099-Misc from same employer. Box 7 (nonemployee compensation) was reported in the 1099-Misc. I have Schedule C (Copy 1) to report the W2 income, and Schedule C (Copy 2)) to report the 1099-Misc. Is it ok to report both incomes together on one single copy of Schedule C, instead of two repeated copies?
They must be reported on separate copies of Schedule C. You cannot combine them.
The IRS instructions for Schedule C say the following (page C-5).
"If you had both self-employment income and statutory employee income, you must file two Schedules C. You cannot use Schedule C-EZ or combine these amounts on a single Schedule C."
Note that the 1099-MISC income is subject to self-employment tax. The W-2 income is not subject to self-employment tax because Social Security and Medicare taxes were withheld from it.
Thanks for helping me understand the unique way that I have to submit two separate Schedule C forms as a statuatory employee. On which Schedule C do I list my expenses?
I received a W2 and 1099 Misc. The W2 is more for the handling of benefits. The 1099 is payment of commissions.
It would be good if I could combine the two since they are both related to my sales position. It is also messing up my state return for my business. (insurance sales / investment advisor).
Thank you, Ellis
See RJS's original answer above. If you are an employee, everything should be reported to you on a W2.
I have this same situation. My husband got a W-2 from his employer but also a 1099-MISC for a commission payment (box 7). Can I show this on my return without it being self employment?
This should all be reported on a W2. I would ask your employer for a corrected W2.
Hi! Did you ever receive a solution to this issue? I have the same question.
Thank you!