40K sign on bonus on 1099-NEC

Forum|Forum|5 years ago
March 16, 2021
2 replies
13 views

Hey all,

My client received a 40K sign on bonus on a 1099-NEC. How do you normally handle this?

I think it should be on a W2. The client is over Social Security max.

Thanks,

Aaron

Lacerte Tax

This topic has been closed for replies.

Best answer by TaxGuyBill

1) Tell client to ask employer to correct it.

2) If the employer refuses to correct it, file Form 8919 but warn client that his employer will eventually get a notice from the IRS about it.

T

TaxGuyBillAnswer

Level 15

1) Tell client to ask employer to correct it.

2) If the employer refuses to correct it, file Form 8919 but warn client that his employer will eventually get a notice from the IRS about it.

Aaron 12Author

Level 3

When they talked to the employer the bonus was paid by a different entity. Not the entity that they are "technically" working for. Thanks for taking the time to respond.

qbteachmt

Level 15

"Not the entity that they are "technically" working for."

1099-Misc box 3, then.

Don't yell at us; we're volunteers

BobKamman

Level 15

Suggest to the employer that they read Rev Rul 2004-109

https://www.treasury.gov/press-center/press-releases/Documents/rr_2004_109.pdf

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