Hi Jako -
First of all, I'm not a tax expert. But this is how I handled it per the advice I got from this community. Per the original thread, I'm a W-2 employee and not filing Schedule C. I used TT 2021 Desktop and not the online version so these below instructions may be different but I'm sure it can be duplicated in the On-line version.
1. I first enter the $5K in Other Income as: Employer name 1099-NEC with a positive number $5,000
2. Then I enter a second entry in Other Income as: "Corrected Erroneous Employer mame 1099-NEC as a negative number -$5.000.
The above enteries will show up in the Schedule 1 Other Income Statement under line 22 a & b (for tax year 2021).
For me, since I don't have other additional income, my Schedule 1 Additional Income and Adjustment to Income Form netted out to $0.00. I think this is important to have as if you got a 1099-NEC, the IRS would probably look for a schedule 1 or schedule c.
They hadn't reached out to me for my information or a copy of the email from the employer stating I shouldn't had received the 1099-NEC. Maybe I got lucky.
Hope this helped.
