I have received a 1099-NEC for a cancelled college course that my daughter (my dependent) was take in summer 2020. She had paid $400 on credit card for the course, and I paid an additional $1,700 ($2,100 total). Once the class was cancelled, the university sent refund checks for those two amounts. She received the $400 check and I received the $1,700 check during summer 2020.
A 1099-NEC for the $1,700 portion arrived in February 2021. I quickly learned the 1099-NEC is typically used to reflect payments to self-employed individuals or contractors. However, I am neither self-employed nor a contractor, nor is my daughter. The $1,700 was certainly not income; it was a refund.
I expect a 1099-NEC for $400 will soon arrive based on the refund sent to my daughter. One additional piece of the scenario: the university is not my daughter's school, but an out-of-state university that offered a course that she wanted to take. It is a state school in North Carolina.
I have four questions: 1) Do I enter the 1099-NEC as best I can into Turbo Tax Premier, and then skip the questions about "my business" which does not exist? 2) Assuming my daughter receives a 1099-NEC for the $400 portion of the refund, do I enter that 1099-NEC on my tax return, or on hers? 3) I guess I can enter the $2,100 as a tuition expense in the Education section of Turbo Tax? 4) Because the 1099-NEC was issued by a North Carolina university, do I have to pay or report taxes to North Carolina?
Thank you!
