Waiting period penalty due to late payment from Employer 1099-MISC

[johnsantaclara1]

Dear experts, I received a 1099-MISC with amount showing under "Other" as the last payment before I left the job was late.

TT Premier added it in  Part I -> Additional Income under "Other income"   (I chose "No, It didn't involve work like my main job." and "No, it didn't involve an intent to earn money".

Hope above is right.

I was wondering why this is increasing my federal tax due upon entering this amount, as it shows in Non-taxable income in my paycheck. Appreciate your advice. Thank you!

[Texas Roger]

Based on the description in your post, the categories you chose for how to treat the income seem accurate. Regardless of what your paycheck says, this income is taxable for federal income tax. Since it is not treated as self employment income, it is not subject to self employment taxes.