Form 1099-MISC - Box 15b Nonqualified Section 409A Income
To enter or review the information from Form 1099-MISC, Box 15b Section 409A Income:
From within your TaxAct® return (Online or Desktop), click on the Federal tab. On smaller devices, click in the upper left-hand corner, then select Federal.
Click Form 1099-MISC to expand the category and then click 15b - Section 409A income
Choose Form 1040 or Schedule C and then proceed with the Q&A to enter information.
There is a 20% tax on the amount you enter from IRS Form 1099-MISC, Box 15b Section 409A income. This amount will be included in the total of Line 62.
Note: Line 62 of Form 1040 may have items included from Other Taxes. When the form is printed, the total amount of Other Taxes will print to the left, and the text printed to the left of that amount will define the type of tax.
According to the IRS Instructions for Form 1040, you should include in the total on Line 62 any additional tax on income you received from a nonqualified deferred compensation plan that fails to meet certain requirements. This income should be shown in Box 12 of Form W-2 with Code Z or in Box 15b of Form 1099-MISC. The tax is 20% of the amount required to be included in income plus an interest amount determined under section 409A(a)(1)(B)(ii). See section 409A(a)(1)(B) for details. Identify as "NQDC". On the dotted line next to Line 62, enter the amount of the tax and identify it as indicated.