@parsons-gh wrote:
Yes, I have a connection. It is the church I attend when not traveling. They send regular gifts to the non-profit I work for, which some to me through a process.
the Christmas gifts they handle differently.
BUT my real question is about the 1099-NET... (I've see other income similar to this, though not a "gift" (perhaps that is the wrong word?).
It seems to me that if the church is correct, then TT needs to let you check a box that says, "this was a gift" (or some such language) and it not compensation for work performed.
The church has a requirement to issue a 1099 of some type if they pay more than $600 (in most cases). If the money is not "compensation" for some work or service you performed for the church, they should have issued a 1099-MISC instead of a 1099-NEC. It's up to the recipient to determine if it is taxable income and how to report it.
As to why Turbotax assumes that 1099-NEC is from self-employment, it's because that's the IRS instruction.
I still don't feel I have enough information to know if this is taxable income to you, or not. I think it is more likely that this is not taxable income at all, if it is really a pass-through to your organization. But it would be far better for the church to pay the non-profit directly.
To report this as "other" or miscellaneous income, you can enter the 1099-NEC but answer all the test questions NO (not like your main job, not for profit motive, etc.). That should take care of it. Then, if you determine this is not taxable to you, you can enter another item of miscellaneous income with a minus sign (negative number) to offset the income and cancel it out. Keep records for at least 3 years in case the IRS asks questions.
