No, the realtor rebate is not taxable income. Because he issued you a 1099-NEC, you will need to still enter it on your return. However, you will then need to make an adjustment to back the income out of your taxable income.
To do this you will take the following steps:
- Federal
- Income
- Start next to 1099-NEC under Other Common Income
- Enter the 1099-NEC
- When you get to Does one of these uncommon situations apply, select this is not money earned as an employee and select continue
To remove the income so it is not double reported, you will go to
- Income
- Miscellaneous Income
- Other Income not already reported on Form w-2 or Form 1099
- Select yes to Other Wages Received
- Hit continue 3 times without entering anything
- Say Yes to did you earn any other wages
- Select Other then Continue
- Enter the amount reported on 1099-NEC instead as a negative number with a description that is is backing out the nontaxable realtor rebate
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
