TT only mentions 1099-Misc for the rental property section and 1099-NEC goes to my ordinary income. The amount I got for 1099-Misc is from the tenant's company who moved out in mid-2020. The amount covered for the last month's rent, lease termination fees, and repair cost for floor water damage.
Due to it's treated as my ordinary income, my tax amount goes up a lot, and the costs I entered for the rental property covers only up to a certain amount (I guess $10k?) which should really be covered by the 1099-NEC money.
Is it okay to report 1099-NEC income against 1099-Misc for the rental property? Or, is there any special way to not pay incorrect tax? Any help would be appreciated. Thanks!
