W2 and 1099-Nec same employer

[itsdrewdollar]

I received a w2 for wages and a 1099-nec from the same employer. The 1099-nec payments in box 1 were for sales bonus working at a motorcycle shop. I don’t view this as self employment income. How do I navigate inputting this into turbo tax 2021?

[MayaD]

The bonus reported on your 1099 NEC  is not self employment income.

To report the income on your return:

• Select Federal Taxes 
• Click Wages & Income. 
• Click "I'll choose what I work on" 
• Scroll all the way down to the last section "Less Common Income." Click the Start button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."
• Click the Start button for "Other income not already reported on a Form W-2 or Form 1099."
• The next screen asks "Did you receive any other wages?" Select Yes and click Continue.
• Continue to the screen "Did you earn any other wages? Select Yes and click Continue.
• The next screen asks the source of the other earned income. Select "Employee compensation that was not reported on a W-2." Ignore the note that says not to enter compensation for which you will receive a 1099. 
• On the next screen, "Employee Compensation Not Reported on a W-2," click Continue.
• On the next screen, "Report Your Wage Income," enter the employer's name and EIN from your W-2. When entering the EIN, you must enter the hyphen after the first two digits. For Total Wages Received, enter the amount on the 1099-NEC. Select Reason Code H. Click Continue.
• On the next screen, "Report as Wages," click Done.
• This returns you to the Miscellaneous Income screen. 

Form 8919 will be included in the return, with reason code H in column (c).

Form 8919 is used to figure and report your share of the uncollected social security and Medicare taxes due on your compensation if you were an employee but were treated as an independent contractor by your employer. By filing this form, your social security earnings will be credited to your social security record.IRS.gov

[Edited, 02/08/2022, 12:09 PST]

[itsdrewdollar]

Just to clarify one of your bullet points quoted below

• On the next screen, "Report Your Wage Income," enter the employer's name and EIN from your W-2. When entering the EIN, you must enter the hyphen after the first two digits. For Total Wages Received, enter the amount on the 1099-MISC. Select Reason Code H. Click Continue.

- You typed 1099-Misc, was that a mistake because we were referencing a 1099-NEC

[MayaD]

@itsdrewdollar

Yes. the form I am referring to is 1099-NEC 

[itsdrewdollar]

@MayaD 

is it the same thing to add my 1099-NEC under the ‘add 1099-Nec’ title

and then check the box that says ‘these wages should have been reported on my w-2’ ?

[ZoltanB45]

Unless the employer made an error and sent you a 1099 instead of a W-2, you would not check the box "these wages should have been reported on my W-2."

[itsdrewdollar]

@ZoltanB45 My 1099-NEC was for a bonus, according to the IRS bonus’ should be included in a w-2. So therein lies the error. Is that not true?

[ThomasM125]

@itsdrewdollar Yes, the income should have been reported on a W-2 form. 

[Hal_Al]

Q. Is it the same thing to add my 1099-NEC under the ‘add 1099-Nec’ title and then check the box that says ‘these wages should have been reported on my w-2’ ?

A. Yes

Confirming  Thomas125's reply: 

   -Enter in the 1099-NEC section. 

        -At the "Does one of these uncommon situations apply?" screen, check "(your name)'s employer reported this income on a 1099-NEC but it should have been on  a W-2"

TurboTax will generate form 8919 to have you pay the employee's share of social security and Medicare tax. 

By not reporting this income as self employment, there is a chance that the IRS will contact your employer to collect the Employer's share of social security and Medicare tax. 

MayaD's answer isn't wrong. It's an alternate, and longer, way to do it.

[itsdrewdollar]

@Hal_Al I appreciate the feedback

[jasonhuang0081]

Hello,

I have a quick follow up question regarding the same issue. My company is giving me payroll using PEO which manage payroll and benefit, so I get w-2 with EIN of that company name. Then, my company gives me bonus and gave me 1099-NEC which is under my company's own name, and that comes with another EIN. 

According to the process shown here, when I report 8919, should I enter the same name and EIN shown on my w-2 or EIN shown on my 1099-NEC?

I just don't want to mess up and get IRS or state tax board rejected and do all those again. Thanks!

[Cynthiad66]

You should enter the EIN shown on the form 1099-NEC.  For IRS purposes the amount on the EIN number has to be on the return.

@jasonhuang0081

[jasonhuang0081]

Okay, thanks for the response!

Also, just to double check. In this case, I don't need to file or include any other specific forms other than 8919 in this scenario, right? 

[JohnW152]

Assuming that your scenario is the same as the original poster's -- then, yes, only Form 8919 is necessary.