[GBG728]

I had a job offer that was reneged and the employer paid out a lump sum equivalent to 4 weeks of what my salary would have been. I received a 1099-Misc and the income is listed in box 7 as non-employee comp. Using Turbo Tax, I'm supposed to classify this as "earnings", "bonus", "fringe benefits", "consulting agreement", etc. It tells me that the income should be in box three instead of 7 and I should contact the employer. Does anyone know how this severance type of income should be treated?

Thanks much.

[MukatA]

You are self employed or independent contractor. You will report your income and expenses on schedule C or C-EZ (Form 1040). This income is subject to SE tax at 15.3%. Read: Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor