It depends. If the income reported on your Form 1099-NEC is for rent and rental deposits then you report the income as rental income. Keep the records with your tax return.
If there is an amount that is considered a bonus because of a service you provided in the abused person program then that portion would be considered other income and not self employment if it is not an ongoing concern where you would earn money regularly for your services (not the rental of your property). If you decide it is 'other income' and not self employment you can enter the income as follows.
- The entry of Form 1099-NEC is a convenience and not a requirement. The IRS has a copy of the same form that you have. You should delete any Form 1099-NEC that you have previously entered. Next take the following steps:
- Go to the Wages and Income section of TurboTax
- Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
- Select Other reportable Income > Enter a description (Bonus Award) and the amount
If the deposit is actually (first or last month rent) then it is also rental income. If the deposit is actually a deposit and is set aside in escrow, then it is not income until and unless it becomes unrestricted and you have full rights to the deposit.
- Security deposits. Don’t include a security deposit in your income when you receive it if you plan to return it to your tenant at the end of the lease. But if you keep part or all of the security deposit during any year because your tenant doesn’t live up to the terms of the lease, include the amount you keep in your income in that year. If an amount called a security deposit is to be used as a final payment of rent, it is advance rent. Include it in your income when you receive it.
@MM5475
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