1099 Income Tax Question?

Question

My employer gave me a bonus and issued a 1099. Now I am trying to do my taxes using Turbo Tax. If I say I am an employee (and not a contractor) then I have to pay Social Security tax, medicare tax and fill out another form. I don't know what to do, since I was an employee and the rest of my wages were paid by w-2 this doesn't seem right.

Update:

Looks like the income was in the wrong box on the 1099, they are issuing new ones with the income in box 3 instead of box 7. I think that will fix the problem. Thanks for your help!

me · Accepted Answer

The 1099misc is the correct form for your bonus. It is not wages. You enter this on the other income line on the 1040 and you do not pay self employment tax on it.

Anonymous · Answer

I would just grab the 1040 or 1040A income tax form and booklet at your local library or post office, fill it out, and send it in through the regular mail.  I personally find it easiest to do taxes that way since all of the detailed instructions are right in the book and you're less likely to make a mistake.  When you send it through the regular mail, just don't forget to attach your W 2 and 1099 form.  Personally, I've never seen a 1099 sent out for a bonus.  1099's are usually sent out to provide pension and/or IRA distribution information.  If you simply just got a bonus, it should already be included in your Wages box.

jwishz · Answer

You are correct in your concern. Your employer should have reported this on your W2. I suggest asking them to void the 1099 and issue you an amended W2.  Give the employer a chance to make it right

Anonymous · Answer

If your employer won't do it right, see form 8919. That way you only pay your share of the Fica/MC taxes.  (Had he done this correctly, it would have been withheld from your paycheck.)

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1099 Income Tax Question?

4 Answers