Question

Should my husband's bonus be reported on a 1099-MISC or W-2?

Forum|Forum|6 years ago
March 4, 2020
1 reply
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In late 2018, my husband was notified he would be terminated by his employer, Company A, in May 2019. In his separation agreement, he was guaranteed payment of his 2018 incentive bonus to be paid in early 2019. After finding another job, he terminated his employment with Company A before the end of 2018. In Feb 2019, we received the bonus check from Company A with his employee portion of FICA withheld. No additional amounts were withheld from the bonus payment. In 2019, I remitted estimated federal income tax for the bonus. In February 2020, we received a 1099-MISC for the bonus payment. Income is recorded in BOX 3, and the employee portion of FICA withheld is reported in BOX 4. Is this correct? TurboTax indicates that this was self-employment income. How should I correctly report this income in TurboTax?

TurboTax Deluxe Online

ColeenD3

Box 3 income is not reported as Self-employment income.

Sign in to TurboTax Online, click Continue your return, then pick up where I left off (if you are using TurboTax CD/ Download, then just open your return on your computer).

Click on Federal Taxes at the top of the screen.
At the bottom of Your Income box pick the option in blue to help me add other income, then jump to full list;
Scroll down the page to the last section titled: Less common Income and click show more;
Select start or update next to the last topic titled Miscellaneous Income, 1099-A, 1099-C;
Scroll down to the last option titled Other reportable income and select start or edit;
When it asks, "Any other reportable income?" say yes then type in a description and the amount to report it on your tax return.