Both Form 1099-NEC and Form 1099-MISC would be reported the same way, in TurboTax, so it doesn't matter that you got a 1099-NEC versus a 1099-MISC for your bonus (compensation). Your employer did not correctly report you bonus. To report the bonus, you'll enter the income as additional wages that were not reported on a W-2. You will have to pay Social Security and Medicare taxes since the employer did not withhold them from your bonus. Per IRS, Publication 15, Page 15, 5. Wages and Other Compensation:Wages subject to federal employment taxes generally include all pay you give to an employee for services performed. The pay may be in cash or in other forms. It includes salaries, vacation allowances, bonuses, commissions, and taxable fringe benefits. To enter your bonus that you received on a 1099-NEC, in TurboTax Premier Online:Sign into your TurboTax AccountClick on Pick up where you left off On the left side screen, select Federal then Wages & Income.On the Wages & Income screen, scroll down to Less Common Income. Then scroll down to Miscellaneous Income, 1099-A, 1099-C and select Start/Revisit.On the Let's Work on Any Miscellaneous Income screen, select Other income not already reported on a Form W-2 or Form 1099 (even though this was reported on a 1099-NEC) and StartOn the Other Wages Received screen, answer Yes and ContinueContinue through the interview until you get to the Any Other Earned Income screen and answer Yes and Continue. Ignore the note that says not to enter payments for which you will receive a 1099. On the Enter Source of Other Earned Income screen, select Employee compensation that was not reported on a W-2 and Continue. On the Employee Compensation Not Reported on a W-2 screen, click ContinueContinue with the onscreen interview until you get to the Report Your Wage Income screen and enter the information. For the Reason Code, select H - I received a Form W-2 and a separate Form 1099-MISC and/or 1099-NEC and the income should have been reported on Form W-2 then Continue On the Report as Wages screen select Done

Question

I received a signng bonus from a new job which was paid prior to starting. I have now received a 1099-NEC. Is this correct or should it be 1099-misc?

Forum|Forum|3 years ago
March 6, 2023
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TurboTax Premier Online

H

HelenC12

Both Form 1099-NEC and Form 1099-MISC would be reported the same way, in TurboTax, so it doesn't matter that you got a 1099-NEC versus a 1099-MISC for your bonus (compensation).

Your employer did not correctly report you bonus. To report the bonus, you'll enter the income as additional wages that were not reported on a W-2. You will have to pay Social Security and Medicare taxes since the employer did not withhold them from your bonus.

Per IRS, Publication 15, Page 15, 5. Wages and Other Compensation:

Wages subject to federal employment taxes generally include all pay you give to an employee for services performed. The pay may be in cash or in other forms. It includes salaries, vacation allowances, bonuses, commissions, and taxable fringe benefits.

To enter your bonus that you received on a 1099-NEC, in TurboTax Premier Online:

Sign into your TurboTax Account
Click on Pick up where you left off
On the left side screen, select Federal then Wages & Income.
On the Wages & Income screen, scroll down to Less Common Income. Then scroll down to Miscellaneous Income, 1099-A, 1099-C and select Start/Revisit.
On the Let's Work on Any Miscellaneous Income screen, select Other income not already reported on a Form W-2 or Form 1099 (even though this was reported on a 1099-NEC) and Start
On the Other Wages Received screen, answer Yes and Continue
Continue through the interview until you get to the Any Other Earned Income screen and answer Yes and Continue. Ignore the note that says not to enter payments for which you will receive a 1099.
On the Enter Source of Other Earned Income screen, select Employee compensation that was not reported on a W-2 and Continue.
On the Employee Compensation Not Reported on a W-2 screen, click Continue
Continue with the onscreen interview until you get to the Report Your Wage Income screen and enter the information. For the Reason Code, select H - I received a Form W-2 and a separate Form 1099-MISC and/or 1099-NEC and the income should have been reported on Form W-2 then Continue
On the Report as Wages screen select Done