My "severance" was reported on a 1099-MISC form in box 3. Is it still considered a severance or a gift? If my former employer meant it to be a gift, does that matter?

[pastormike1]

I'm wondering if it was not meant to be technically severance, but an award for my years of service. Or are they the same? What am I legally allowed to report?

[AmyC]

The issue is that you have a W2 that goes along with the 1099-MISC. You need to report it in the program this way:

1. Log in to your return.
2. Go to income
3. Scroll down to  Other/Less Common Income
4. Select Miscellaneous Income to start/edit
5. Select Income from Income not on a W2
6. Edit/ Start/ Revisit
7. Did you receive
8. Other Wages? Select Yes
9. Continue past household employee, sick, disability
10. Any Other Earned Income? Select Yes
11. Continue
12. Select Employee compensation not reported on W-2 - ignore that part that says 1099 reported elsewhere, since this is where you are reporting it.
13. Continue
14. Enter employer name and income -the income from 1099-MISC box 3,
15. Check the box, I received a 1099-MISC for this income
16. Check my employer has an EIN and enter it in the box
17. Select the reason code H from dropdown box
18. continue

@pastormike1 [Edited 4/4/2025  |8:33 am PST]