I have a 1099-NEC for student loans forgiveness or repayment by a third party. I entered the 1099-NEC in TurboTax and it categorizes it as business income. The instructions on the 1099-NEC says that if it is not self-employment income, then it is a sporadic activity or hobby and to enter it as Other Income on Form 1040 Schedule 1. I cannot get Turbo Tax to let me do that. How do I correct this?
If it is not subject to self employment tax, go to "other common income." Then go to 1099-Misc and enter the income in box 3. Still reporting the income and not getting the s/e tax.
The method zoltanb describes will work.
Alternatively, enter it in the 1099-NEC section. At the screen titled "Does one of these uncommon situations apply?", select "This is not money earned as an employee or self employed individual, it is from a sporadic activity......"
That will automatically put it on line 8z of Schedule 1 and identify it as "non-employee compensation from 1099-NEC"
You say this was "student loans forgiveness or repayment by a third party". It kinda depends on your relationship to the third party. If the payer was your employer, it should be treated differently.
This is still there:
At the screen titled "Does one of these uncommon situations apply?", select "This is not money earned as an employee or self employed individual, it is from a sporadic activity......"
At least, it is on my desktop (download) Deluxe.