The Form 1099-NEC will be taxable on your Federal Tax Return. And the Form 1099-NEC should be entered in TurboTax.
The First Responder Recognition payment that was issued during the 2021 tax year was not taxable. No 1099 was issued for that payment. The payment that was issued in 2022 is taxable, per the letter that accompanied the payment. A 1099-NEC was subsequently issued by the state to the recipients of the payments.
To report this so it doesn't appear as a business, do the following.
- Sign in to your TurboTax account.
- Click on Federal Taxes tab.
- Choose Wages and Income.
- Scroll down to Other Common Income
- Select 1099 -NEC
- Enter the 1099 NEC information'
- Then it asks for the description of the income. Give it the proper description.
- When you reach a page that says Does one of these uncommon situations apply?
- Select This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby (this is not common).
- This will then be taxed as common income and not business income.
Florida does not have a State Income Tax, so it is not reported on a Florida State tax Return.
Click here for information on Florida's Essential First Responders Recognition Payment.
Click here for additional information of Form 1099-NEC.
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