bOOT

There isn't any apparent reason why you, as an employee, would have received  "boot" when your employer's business was sold unless your employer chose to make that payment as a form of bonus (or severance payment).

Is it possible this payment was included in your reported W-2 earnings? If not, you have two options:

1. Enter it as "other reportable income" (see instructions below);

2. Disregard it and wait to see if a tax form arrives or the IRS asks for additional information.

It is possible your former employer reported this payment on a Form 1099-MISC and you didn't receive it. If this is what happened:

• The IRS will send you an automated  Notice of Proposed Increase in Taxes later this year.  
• They will calculate the tax due (plus interest and penalties) and you can send them a check. No amended return is necessary.
• The IRS uses this simplified procedure since It is extremely common to omit reporting a Form 1099-MISC. You file before they arrive, they get lost in the mail, get lost in your house or get tossed along with junk mail.  

To report as "Other reportable Income" in TurboTax, while in your return: 

• Type "other Income" in the search window (or in the Search Topic window for desktop versions) 

• Click on "jump to other Income" (or "other income" in the Search Topic results) 

• Enter the information from your Form 1099-MISC, and click on Continue 

• Enter a description and click on Continue 

• On the screen with "Does one of these uncommon situations apply?", indicate "None of these apply" 

• Answer "No..." to "Did the [Description] involve work that's like your main job?" 

• Answer "I got it in 2020" when asked "How often did you get income for [Description]?" 

• Answer "No, it didn't involve an intent to earn money." 

The amount will be reported on line 8 of Schedule 1 (Form 1040).