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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.
- Open your return to the federal income section
- Select income from Form 1099-NEC
- Enter the information from your form
- Continue
- Describe the reason Education reimbursed
- Continue
- Does one of these uncommon situations apply?
- Select not earned, sporadic, hobby - the screenshots are very different but you need hobby
- Continue
- See the NEC summary
- Done
This makes the income taxable. If it really isn't taxable, you need to subtract the income back out. Follow these steps:
- Open to federal income
- Locate Miscellaneous Income, 1099-A, 1099-C, Start
- Scroll to the bottom
- Other reportable income, Start
- Other taxable income?
- Select YES
- Description 1099-NEC for education reimbursement
- Amount, enter your negative amount, use a minus sign in front.
- Continue
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March 25, 2025
6:47 PM