If I received a $25,000 bonus from my employer and it is not listed on my W-2? When doing my taxes, do I just add that to the total in Box 1 on my W-2? What about Box 3 & 5 for Social Security and Medicare wages? Do I also have to add it there?
You can't do that, and the employer should know better. If the W-2 you submit doesn't match *exactly* the copy of that W-2 the employer submitted to the IRS, you'll have a high risk of an audit. (like 100%). So enter the W-2 exactly as printed.
Then to cover yourself, for the additional income not reported to you, here's how to enter it in the program.
-Under the Wages & Income tab (might be called Personal Income) select the button for "I'll choose what to work on".
- Scroll down to the Less Common Income section and elect to start/update Miscellaneous Income, 1099-A, 1099-C
- Select Other Income Not Already Reported on a Form W-2 or Form 1099
- Select YES and Continue.
- Leave Household Employee blank, and Continue.
- Leave Sick or Disability Pay blank, and Continue.
- Select YES and Continue.
- Select Employer Compensation that was not reported on a W-2, and Continue.
- Read the information presented, then Continue.
- If the screen asks who the income is for, select as appropriate, and continue. Otherwise, the next item applies.
- Enter the employer's name as it appears on your W-2 in box c.
- Enter the employer's EIN as it appears on your W-2 in box b.
- Enter the amount you were paid that was not reported on the W-2.
- For the reason code, select code G. (Read the note above that selection box to understand why)
- click Continue.
- Select NO, then click the "complete this form" link to open up a fillable version of this form directly on the iRS website. Fill this form out, and print it. Note that you only fill out what you know. I wouldn't be surprised if over 75% of it, you end up leaving blank. Once done with that, go back to TurboTax and click continue.
- On the Miscellaneous Earned Income screen, select NO and Continue.
- Click DONE, and you're done with the TurboTax portion of this.
- For the form SS-8 you completed and printed, make sure you sign it at the bottom of the last page. Then mail it to
Internal Revenue Service Form SS-8 Determinations
P.O. Box 630, Stop 631
Holtsville, NY 11742-0630
Note that you will still be able to e-file your tax return (I think). But it will not be processed until the IRS has received the SS-8 with your original signature on it. Faxed or photocopied SS-8's are not accepted. The one they receive must have an original signature on it.
All the above will help cover you and protect you from audit. If you don't do this, then if the employer "really is" reporting the income on his tax return as being paid to you, you'll get audited 24-36 months down the road and the fines, late fees and penalties could be hefty. Doing all this avoids that possibility.
Internal Revenue Service
P.O. Box 409101
Ogden, UT 84409