Received a 1099 Misc for a vacation payoff that was paid the year after employment ended. Is this correct?

[edwardsfour]

Left employment in November 2015. Payment for accrued unused vacation was not made until February 2016. The company sent me a 1099 Misc for the vacation payoff. I did NOT receive a W2 from them for 2016 as I was not employed by them then. Should this have been paid on a W2? If so, how do I enter this in Turbo Tax Premier? If not, how do I enter this in Turbo Tax Premier as non of the options pertain to vacation payoff?

[TomD8 · Accepted solution]

You're right, you should have been issued a W-2.  Compensation for unused vacation days is considered wages subject to withholding. 

Enter your 1099-MISC in the 1099-MISC section, which is under Other Common Income. When you go through the follow-up questions you'll come to the page headed "Do any of these uncommon situations apply?"  One of the choices is that your employer reported the income on a 1099-MISC that should have been reported on a W-2.  Check that box and proceed on.