I was hospitalized earlier in the year and my boss Paypaled me money as a bonus to cover hospital bills. How do I properly cover it in taxes?
Just a quick question I wasn’t sure of. Basically I got sick and my boss paypaled me ~17k as a bonus in early 2019 to cover my out of network costs for my hospitalization. He said it was a bonus for being a good employee and he wants to treat his upper management like family. I’m wondering how I treat it on taxes so I don’t get in trouble. It was the company’s Paypal but it was not put on our payroll whatsoever so they paid no taxes on it. Do I just pay freelance taxes on it like it was a ‘tip’ even though I’m an employee of the company?
Update based on the comments:
– I’m going to ask our company CPA even though she’s not on call about how she’s marking the ‘gift’ for this quarter or next
– Depending on her answer and my boss’ answer, I’ll get a CPA to make sure I’m 100% OK if I feel like there’s any confusion on their end
– I will likely file as a 1099 if they won’t add it to my payroll for whatever reason, I don’t feel like I can argue it’s a gift since it’s our company paypal even though my boss is the owner/CEO
Thanks y’all, very helpful responses and I appreciate it. (And yes my boss is a great man.)