1099 Question

[Orthodoc]

Hi everyone,

Love the forum. I have a quick question on how to handle the 1099-Misc income from my sign-on bonus from last year. I signed with a practice in 2015 and received an initial sign-on bonus and a monthly stipend as I finish my fellowship. I received a 1099-Misc and when I went to add it into turbo tax, turbo tax continued to ask me about my business and if I had any business related expenses to deduct. I don't have a business and the only expenses I could think to deduct would be my licensing, dea and society fees. Am I missing something? Should I be doing something different with this income? It seems like I have to pay self-employment tax on this money in addition to just the income at my marginal rate which sort of stinks. Thanks for your help

[Zaphod]

It doesnt really matter on the tax front as you no doubt have hit the limit anyways so you'll have paid the max employment taxes. I dont know what to say about turbotax, but Ive never had a bonus, so maybe someone has done it. Sometimes turbo tax can be annoying with certain things. Like how it continues to tell me how its working on my refund between segments when I know they can easily teach the software to recognize the giant number at the top and not rub it in the whole time.

[childay]

Check this out if not already

https://www.whitecoatinvestor.com/tax-savings-for-residents/

 

Also I assume you did not set up a retirement plan for the 1099 income.  I believe it is too late to do so but something to consider in the future if you continue to have 1099s.

[The White Coat Investor]

Tom wrote:

Check this out if not already

https://www.whitecoatinvestor.com/tax-savings-for-residents/

 

Also I assume you did not set up a retirement plan for the 1099 income.  I believe it is too late to do so but something to consider in the future if you continue to have 1099s.

Click to expand...

Not too late to do a SEP-IRA.