I got a 1099-NEC for participating in a medical research study. I'm having a lot of trouble filing this, as it's being considered self-employment income, taking me to some Schedule C for business....I'm so confused. I reached out to the facility doing the research / who issued the 1099, but they were not able to provide any guidance. How do I file this?
This is my first time receiving one of these and also the first time filing taxes myself, so while I'm normally already cautious to make sure my taxes are done perfectly, I'm extra extra paranoid to not make a mistake. Any help is greatly appreciated!!
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After you have navigated to the 1099-NEC input area, and chosen to add a 1099-NEC, you will be asked "What type of income is on your 1099-NEC?" Choose "Hobby Income" This will report the income as "other income" on your 1040.
The facility reported the payment incorrectly. Payment for participating in a medical research study is supposed to be reported on Form 1099-MISC, in box 3, not on Form 1099-NEC.
The simplest thing for you to do is enter it in TurboTax as follows.
The income will be reported as other income on Schedule 1 line 8z.
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