We had a patent bonus that was paid out after the design was deemed worth pursuing a patent, and an additional bonus after a patent was received. All the work I did on the design was completed in 2023.
Where do you see this question?
If the question is asking if you participated when it comes to a 1099 that you are entering, then if you did the work, even in a prior year, the answer would be yes.
This is from a 1099-NEC. I know it is not related to gambling or transportation. I'm just not certain if the first or the last option applies.
The question as listed in Turbo Tax says:
It depends. This income must be reported on Schedule C for self employment unless you were paid wages from the same company. If you were not an employee, then this is income from your services. Use the link below to report your income. You actively participated in the operation of this business.
If your employer reported your bonus on a 1099-NEC you have two options to report the income.
Option 1:
Option 2: This is correct, however your employer will not be pleased.
If you are still working for the same employer and you believe they should be paying the employer share of social security and medicare taxes then you have a second option to report the bonus on a W-2 by completing a conventional paper return and using substitute W-2 (Form 4852).
Note: Returns including Form 4852 can't be e-filed because of IRS regulations.