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January 18, 2025
Question

Is a profit sharing check considerd the same as retirement, do I need to claim/file it?

  • January 18, 2025
  • 1 reply
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I received a profit sharing check this year it was roughly $2,700 gross and $2,400 net so it's already been taxed and idk if I need to add it to my taxes this year? If so Idk where to include the information?

    1 reply

    January 18, 2025

    It depends.  While there are profit-sharing retirement accounts, the employer contributes profits into employees' retirement account.  You would have to request a withdrawal and would receive a 1099-R (based on the withholding amount, this is unlikely).

     

    Because you received a check, this sounds more like a bonus based on profits.  The gross amount and tax withholding would be included on your W2 as Wages (Box 1).  You may see the amount listed in Box 14 and/or you can check if you received a paystub when you got the bonus.  If this is the case, it is included when you entered your W2 so no further entry in TurboTax is needed.  If you are not sure, please ask your employer because it would have to included as income.