Question

I have a 1099 misc, i do not own my own business, however turbo keeps categorizes as so. can you helpme

Forum|Forum|5 years ago
July 5, 2020
2 replies
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I have W2 as a full time employee i received a 1099 misc for an award for work but turbo keeps trying to add it as i'm self employee. can u help

TurboTax Online

A

Anonymous

who paid the award? if it was your employer they should have included it on your w-2 and taken out the various taxes. the issue then becomes is it worth possibly risking your job if you go back to them and request that they reissue the w-2 showing the award. if they won't your choices are to pay the self-employment taxes or file form 4852 to report the payment as wages. filing 4852 will probably cause issues with your employer

if it didn't come from your employer and you performed no services for the payee, you can not use the form1099-misc. it must be entered as misc income on line 11 of schedule 1

RobertG

Your employer should have reported it on your W-2.

Since they did not, you have to report it as self-employment income.

Because it is compensation for services, it is subject to self-employment, (Social Security) tax.

Just answer the questions as if you were self-employed in your W-2 occupation and worked out of your home.

As an alternative, you can use the method described by Opus 17, below:

Enter the income as a 1099-MISC
Select the box that says that you received a Form W-2 and a Form 1099-MISC, but all the income reported on this Form 1099-MISC should have been included on Form W-2
This way you only have to pay 1/2 of the self-employment tax, but it generates a Form 8919, and the IRS may contact your employer regarding the unpaid tax. Some people want to avoid this.

@kanesunny

[Edited 07/07/2020|10:30 PST]

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O

Opus 17

Employee

@RobertG wrote:

Your employer should have reported it on your W-2.

Since they did not, you have to report it as self-employment income.

Because it is compensation for services, it is subject to self-employment, (Social Security) tax.

Just answer the questions as if you were self-employed in your W-2 occupation and worked out of your home.

I disagree. I believe that when you enter the 1099, there is a list of special circumstances and one of them is "my employer should have reported this money on my W-2." That will prepare a substitute W-2 form and you will pay 7.65% social security and medicare tax instead of 15% self-employment tax.

Your employer is required to report anything of value that you receive as compensation for your work on your W-2, including prizes, awards and incentives. (Unless the item falls into a category of allowable tax-free fringe benefits. Awards are not eligible for tax-free fringe benefits unless they are small and meet certain defined rules, in which case you should not get a 1099 either.)