Hello,
As the title states, I received a 1099-NEC in addition to my W2 for a $1,000 bonus I received from a company I no longer work at. (The EIN on both my W2 and 1099-NEC are exactly the same) I haven't yet submitted my return since I'm not exactly sure how to file this. If I try to file it as a 1099-NEC, the software asks me to fill out a Sch. C and put in information about my "business." I do not own a business, on top of this TurboTax wants to give me a Qualified Business Income Deduction which I know isn't correct. How do I go about filing this? I understand that with a 1099-NEC I would be responsible for paying the tax that my employer would have paid if it was reported as wage income on my W2, on top of paying my half. I don't particularly care about paying the whole thing as it was for a bonus, however I don't want to go about this in a way where I'd screw myself up somehow.
Thank you.
No that is not correct. All payments received from employer should be on the Form W-2.
While bonuses are subject to income taxes, they don't simply get added to your income and taxed at your top marginal tax rate. Instead, your bonus counts as supplemental income and is subject to federal withholding at a 22% flat rate.
Follow these steps to enter the bonus. The first few steps might vary a bit in TurboTax Online, depending on what you have already done.
Wages, any bonuses, prizes, and awards paid to employees (report these on Form W-2). IRS - see page 9
No that is not correct. All payments received from employer should be on the Form W-2.
While bonuses are subject to income taxes, they don't simply get added to your income and taxed at your top marginal tax rate. Instead, your bonus counts as supplemental income and is subject to federal withholding at a 22% flat rate.
Follow these steps to enter the bonus. The first few steps might vary a bit in TurboTax Online, depending on what you have already done.
Wages, any bonuses, prizes, and awards paid to employees (report these on Form W-2). IRS - see page 9