other income

Forum|Forum|3 years ago
January 31, 2023
1 reply
0 views

My wife's employer sold the business and instead of staying she went to work for the new owners. The old owners gave each employee $15000.00 as a bonus. They did not take taxes out of the bonus or issue 1099 forms for this. I had made estimated tax payments for this amount right after receiving it. Now I can not figure out where or how to enter this $15000.00 on turbo tax. Some of the other employees said they were treating this as a gift. Can someone shed a little light on this for me. Thanks in advance

Best answer by JohnB5677

Please try to contact the original employer. $15,000 is exactly the number that an individual can gift without the gifting person having to pay tax on it. A key point is “Who wrote the check?”.

If the individual wrote the check, it is a gift. If the business wrote the check, it is wages.

If it is wages, this is how to post it.

Start at Federal
Wages & Income
Add more Income
Scroll down to Less Common Income
Select Miscellaneous Income, 1099-A, 1099-C from drop-down
Then select other income not already reported on a Form W-2 or Form 1099
Follow the interview.

MinhT1

Level 15

As this was paid by an employer, this is income which must be reported on your tax return.

The estimated tax payments can be entered in TurboTax as follows:

In TurboTax, open your tax return
Click on Federal in the left-hand column, then Deductions & Credits
Continue to locate the section named Estimates and Other Taxes Paid and click Show more
Click on Start next to Estimated Tax Payments
On the next page, click Start next to Federal estimated taxes for 2022 (form 1040ES)

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kencubiloAuthor

Level 2

thank you for the reply. I was not very clear in my post. I am looking for help on how to report the $15000.00 on turbo tax

JohnB5677Answer

Level 15

Please try to contact the original employer. $15,000 is exactly the number that an individual can gift without the gifting person having to pay tax on it. A key point is “Who wrote the check?”.

If the individual wrote the check, it is a gift. If the business wrote the check, it is wages.

If it is wages, this is how to post it.