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Do I have to pay self employment tax on a 1099-NEC that was given through a committee from where I work?

It was the holiday bonus. I was told that “the bonus does not come from -employer-.  It comes from the resident committee of -employer-.” They explained that because of this it does not go through payroll and is not taxed. So I have to file the holiday bonus amount as an independent contractor because the money I received did not come from the work I do at -employer-. Thank you so much for your time. Also if I have not participated in a rideshare (door dash) employment for over 1.5 years is it okay to remove that from my account? 

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1 Reply
JotikaT2
Employee Tax Expert

Do I have to pay self employment tax on a 1099-NEC that was given through a committee from where I work?

If your 1099-NEC was unrelated to a business, you will need to report it as follows to ensure it isn't treated as self-employment income.

  1. Select Income & Expenses 
  2. Go to the  All Income section and select Other Common Income 
  3. Select Form 1099-NEC
  4. You will then be prompted to enter your information as reported on Form 1099-NEC.  Be sure to mark that it was not earned as part of business on the screen titled Does one of these uncommon situations apply?

 

1099-NEC input

 

Also, if you no longer have your door dash business, you can delete it from your return.

 

 

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