Reporting income

Forum|Forum|3 years ago
February 22, 2023
1 reply
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employer corrected a miscalculation in paycheck by paying the difference in cash, but they did not include the cash amount on W2 and they said they couldn't correct it.

How can this cash amount be reported? as other income or schedule C?

Best answer by DavidD66

I would report as "Other Income". To do so, while logged in to your return:

Click on Federal
Click on Income & Expenses
Scroll to the bottom of the "Your income and expenses" page, and click on "Less Common Income"
Click on "Show more"
At the bottom of the page, next to "Miscellaneous Income..." click on Start/Revisit
Select Other income not already reported on a Form W-2 or Form 1099
Answer "Yes" to "Did you receive any other wages?
Click "Continue" until you get to the page with "Any Other Earned Income" Indicate "Yes"
Indicate source of other earned income as "Employee compensation that was not reported on a W-2"
Continue and the program will guide you through entering you wages paid with cash.

DavidD66Answer

I would report as "Other Income". To do so, while logged in to your return:

Click on Federal
Click on Income & Expenses
Scroll to the bottom of the "Your income and expenses" page, and click on "Less Common Income"
Click on "Show more"
At the bottom of the page, next to "Miscellaneous Income..." click on Start/Revisit
Select Other income not already reported on a Form W-2 or Form 1099
Answer "Yes" to "Did you receive any other wages?
Click "Continue" until you get to the page with "Any Other Earned Income" Indicate "Yes"
Indicate source of other earned income as "Employee compensation that was not reported on a W-2"
Continue and the program will guide you through entering you wages paid with cash.

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Anonymous

@DavidD66

So the cash was not reported on any forms. not on w2 and not on 1099

Which reason code should be selected?

and is there a need to send SS-8 form for this situation?

SantinoD

Indicate source of other earned income as "Employee compensation that was not reported on a W-2"

It sounds like you are already an employee, so no reason to file Form SS-8. This form is for independent contractors that have determined that they should be an employee and not independent contractor.

@704373