Ask Experts Questions for FREE Help !
Ask
    pettar2462's Avatar
    pettar2462 Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Feb 22, 2010, 07:15 AM
    I received a W2 and a 1099-MISC (for a bonus) from the same employer. Is this right?
    So I am assuming my employer is considering me an employee because I received a W2 from him, with taxes and all that good stuff taken out. However, I also got a bonus this year, which is on a 1099-MISC (line 7 filled out). TurboTax is now telling me that I have to file a SS-8 form because the employer gave me both a W2 and a 1099-MISC.

    Is this right?
    I'm not really sure what to do... any help would be greatly appreciated!
    Thanks!
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Feb 22, 2010, 10:44 AM

    You may file SS-8 if you are looking for a new job.

    On W2 the employer must withhold Social Security and Medicare taxes.
    On 1099-misc, you will pay 15.3% SE tax instead of 7.65% withheld from W2 income. Thus you pay about 7.5% more. The advantage of getting 1099-misc is that you can directly deduct your business related expenses on schedule C or C-EZ. On W2, you can take business related expenses only as itemized deduction W2 vs 1099-Misc income Your U.S. Tax Return: W2 vs 1099-Misc: Employee vs Independent Contractor.
    pettar2462's Avatar
    pettar2462 Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Feb 22, 2010, 10:48 AM
    Thanks MukatA!

    One more question... on TurboTax should I just put it under the "other income" area then, rather than 1099-MISC area?

    Thanks again!
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #4

    Feb 22, 2010, 11:23 AM

    If I were you I would follow Turbo-Tax's lead on this. As Mukata says - you may very well owe SS tax on this bonus, and reporting it as "other income" would miss that. The SS-8 is a form that indicates that you want the IRS to review why your employer issues a 1099-MISC for the bonus rather than a W-2. Prizes and awards for employees are supposed to be reported on W-2, so this is a strange thing that your empoyer did, and now they are trying to make you liable to pay the empoyer's portion of the SS tax. Did they possibly give you this bonus PRIOR to your being employed by them?
    pettar2462's Avatar
    pettar2462 Posts: 3, Reputation: 1
    New Member
    		  
    #5

    Feb 22, 2010, 11:33 AM

    Nope I had been working with them for a full year. And got it before I left for Christmas.
    I had emailed my boss about it, and he said he was going to ask his accountant, but he isn't in today. How convenient from him. LOL

    Thanks!
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #6

    Feb 23, 2010, 01:44 AM

    You will pay SE tax on the bonus income. If you can get rid of SE tax, everyone will want to be an independent contractor instead of a regular employee.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Sign on bonus and 1099-Misc [ 7 Answers ]

I am a physician finishing training and starting a job in a few months. I will be employeed by a private practice, but have a contract with the local hospital for 3 month income guarantee, relocation expenses and sign-on bonus. The sign on bonus was paid 12/05. I received a 1099-MISC for the...

Received W2 and 1099-misc from same employer [ 1 Answers ]

I worked full time for an empoyer until May this year. I received a W2 for my earnings. I also had HSA contributions that totaled $900 for this period, and was reported in box 12a. I also received a 1099-MISC with $900 in box 7. My employer did not contribute to my HSA. Then, I received a 1099-SA...

I got a w-2 and 1099 misc from my employer can they tax my bonus? [ 1 Answers ]

I am a full time employee . I got a w-2 from my employer and at x-mas time I got a x-mas bonus? Now I also got a 1099-misc form from the same employer? Can they tax my bonus? Can I file w-2 and 1099-misc even thought I am not self employed?

1099 misc on a hiring bonus [ 2 Answers ]

My husband took a position that gave him a hiring bonus. No taxes were taken out, then we received a 1099 on top of a W2 form for taxes. Is this just "untaxed" income when we file taxes. When do the 1099 forms need to be sent from employer/we are still missing one from another job and its...

Signing bonus reported on 1099-misc? [ 2 Answers ]

I got a signing bonus for taking a job. The bonus was paid by someone other than the corp that hired me. They called it a loan and promise to forgive the debt as long as I stay in the job for so many years. I got a 1099-misc for some of the money this year and I'm not sure where to put it in my...

View more questions Search