Situation: I received a 1099-NEC but I'm not self-employed. I received this form because my previous employer decided to repurchase my shares (which I had purchased with after-tax dollars after exercising NQ options). The amount listed on box #1 /Nonemployee compensation/ is the TOTAL proceeds from the repurchase (not just the gains on top of my tax basis).
Questions:
1. How should I enter the form into TurboTax as most options lead me to create Schedule C, which does not seem suitable for me as this isn't business income.
2. Is the amount on box 1 on the form correct? Shouldn't it only reflect the gain (proceeds less basis)?
TIA for your help!
Yes, this type of reporting is confusing but since this is a stock repurchase by a former employer, I have outlined the best method to report this. Before you begin however, make sure you delete all of your previous entries. You will need to start fresh when you begin entering information as described below.
I think the answer to your first question is satisfied by recording your 1099 NEC as an investment sale of employee stock that will not appear on a schedule C.
Your second question is also satisfied by the third point when you enter sale price, description, what you originally paid for it, date sold, date acquired etc.
Let us know if this helps !!
Yes, this type of reporting is confusing but since this is a stock repurchase by a former employer, I have outlined the best method to report this. Before you begin however, make sure you delete all of your previous entries. You will need to start fresh when you begin entering information as described below.
I think the answer to your first question is satisfied by recording your 1099 NEC as an investment sale of employee stock that will not appear on a schedule C.
Your second question is also satisfied by the third point when you enter sale price, description, what you originally paid for it, date sold, date acquired etc.
Let us know if this helps !!