AmyC
Expert Alumni

Deductions & credits

It is sporadic income rather than non-employee. I wonder if you were reimbursed $5250 plus this amount.  Have you spoken to payroll about changing this? Only taxable amounts should be added to your w2 box 1 wages.  See Employer-offered educational assistance programs. I don't understand the NEC at all. See if you can get it corrected to zero.

 

If you must report this, follow these steps to enter it correctly:

Online and desktop have a little difference but this should get you through either one.

 

  1. Open your return to the federal income section
  2. Select income from Form 1099-NEC
  3. Enter the information from your form
  4. Continue
  5. Describe the reason Education reimbursed
  6. Continue
  7. Does one of these uncommon situations apply?
  8. Select not earned, sporadic, hobby - the screenshots are very different but you need hobby
  9. Continue
  10. See the NEC summary
  11. Done

This makes the income taxable. If it really isn't taxable, you need to subtract the income back out. Follow these steps:

  1. Open to federal income
  2. Locate Miscellaneous Income, 1099-A, 1099-C, Start
  3. Scroll to the bottom
  4. Other reportable income, Start
  5. Other taxable income?
  6. Select YES
  7. Description 1099-NEC for education reimbursement
  8. Amount, enter your negative amount, use a minus sign in front.
  9. Continue

 

 

 

 

 

 

 

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