I had some NSO stock options which were cancelled as part of a cashless exercise (and immediate sale) and the company issued 1099-NEC for the transaction. I understand that the 1099-NEC amount is taxed as ordinary income.
However, does this need to be reported on Schedule-C and I also have to pay self-employment taxes on it or do I simply report it as other income on Schedule-1 and pay the ordinary income taxes? If latter, what subsection is it reported on (eg line 8j or 8z of Schedule-1, or somewhere else?).
How do I pick the correct approach in TurboTax step-by-step questionnaire?
Thanks in advance!
