turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Event: Ask the Experts about your refund > RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

My company gives me $125/month because I do not take their health insurance. I am not "self employed". How do I enter my 1099MISC?

This is not self-employment.  The money on the 1099MISC is from my employer.
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

My company gives me $125/month because I do not take their health insurance. I am not "self employed". How do I enter my 1099MISC?

so totally wrong. if your employer paid you for not participating in its health insurance plan then you got compensation. it belongs on your w-2. this can create problems with your employer if you demand a corrected w-2. but you face an issue reporting the 1099-MISC from the same employer.  since this is compensation it is supposed to be subject to fica and medicare taxes and thus reported on form 1099-NEC and schedule C of your return. not only do you face tax issues if you report this as income not subject to payroll taxes your employer is facing potential substantial penalties for filing a bad w-2 and 1099 and failure to withhold and pay the payroll taxes. 

KathrynG3
Expert Alumni

My company gives me $125/month because I do not take their health insurance. I am not "self employed". How do I enter my 1099MISC?

In TurboTax Online:

  1. From the left menu, go to Federal and select the first tab, Wages & Income
  2. Add more income by scrolling to Other Common Income, and Show more
  3. Scroll down to Form 1099-MISC and Start
  4. Enter the applicable description and amount and Continue
  5. At Does one of these uncommon situations apply? the health insurance compensation will not be listed. Unless one of the other options does apply, select None of these apply.
  6. At Did this involve work that is like your main job?, reply No, it didn't involve work like your main job. and Continue.
  7. Enter that you got it in 2020 for How often did you get income for this? 
  8. At Did this involve the intent to earn money? answer No and Continue.

In TurboTax CD/Download:

  1. Select PERSONAL tab.
  2. Select Personal Income and I'll choose what I work on.
  3. Scroll down to 1099-MISC and Other Common Income.
  4. Select Income from Form 1099-MISC and Start.
  5. At Let's get the info from your 1099-MISC, enter your details and proceed through the interview.
  6. At Does one of these uncommon situations apply? the health insurance compensation will not be listed. Unless one of the other options does apply, select None of these apply.
  7. At Did this involve work that is like your main job?, reply No, it didn't involve work like your main job. and Continue.
  8. Enter that you got it in 2020 for How often did you get income for this? 
  9. At Did this involve the intent to earn money? answer No and Continue.

For more information, see: Where do I enter a 1099-MISC?

 

This is not the correct way for the employer to report it. You need to have a discussion with them.

 

@rebeccadunbar

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies