Non-Qualified Deferred Compensation Plan for non-employees

[mikwallace]

I'm the beneficiary of a Non-Qualified Compensation Plan for non-employees.  I receive a Form 1099 Misc showing the amount in block 3 - Other Income.  I read in an unofficial article that the amount should be reported as ordinary income.  The article also said that tax would be due, but FICA would not as FICA was paid in the year when the money was earned.  The article continued and stated the amount would be reported to the recipient on Form 1099 Misc but should be filed as W-2 income indicating the proceeds were from the NQDC plan in block 11.  How do I enter this in TurboTax? Do I create a W-2? If so, is Block 11 the only block that data is entered?

Thanks,

M W  

[RobertB4444]

You should enter this as a 1099-MISC but follow the questions and answer carefully.  It will enter it as though it had been a W2 with an amount only in box 1 - subject to your regular tax rate but not FICA.