My company merged with another company and I received some phantom "stock" shares (https://www.investopedia.com/terms/p/phantomstock.asp) , and I received a payment from this in 2021. I was provided with a 1099-NEC form for this payment. There is only an amount in box 1 (Nonemployee compensation) of the 1099-NEC form, and boxes 2-7 are blank.
- Within the Income section, I've entered this as "Income from Form 1099-NEC".
- I then put "Phantom Share Payment" as the description
- And "None of these apply to me" as the response to: Does one of these uncommon situations apply?
I'm then directed to create a New Business that generated this income using Schedule C. This doesn't apply to my situation as there wasn't any self-employed business that generated this income. What is the correct way to report this income?
