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Nonqualified deferred compensation

Bobby200
Level 3

Client receives a 1099-MISC with Box 14 amount of $14,000 for Nonqualified Deferred Compensation.  It is from a previous employer who sold and went out of business (so penalty should not apply, correct?).  How/where do I enter this in the tax return?  Is there anything else I need to be aware of?  I assume SE tax will apply since it was deferred comp.  Considering putting it as a 1099-NEC, box 1, transaction.   Any insight would be appreciated!

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2 Replies 2
qbteachmt
Level 15

"I assume SE tax will apply since it was deferred comp."

From being an employee and FICA should have previously been withheld on it.

"Considering putting it as a 1099-NEC, box 1, transaction."

But you would not enter a 1099-NEC unless the taxpayer is given a 1099-NEC. You have a 1099-Misc to use, already.

This type of payout should be reported on W2, but perhaps this is payout from a trustee.

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Bobby200
Level 3

As it turns out, client just sent me a Corrected 1099-MISC with all 0's!  Looks like somebody caught the mistake.  Thank you.

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