Correct, you cannot enter a negative number as "other income not already reported on a Form W-2 or 1099", that section is for earned income, such as wages only.
a) Enter Form 1099-NEC so the IRS can match it
b) Back out the income so you are not taxed on the rebate
To do that-
Enter the 1099-NEC Under
Wages & Income
Other Common Income
Income from Form 1099-NEC START
Enter the 1099-NEC as it was reported, Type "Real Estate Rebate" in for the description,
Select "This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby"
DONE
THIS GETS THE FORM ON YOUR RETURN, now back out the non-taxable income-
Wages & Income
LESS COMMON INCOME
Miscellaneous Income, 1099-A, 1099-C START
Scroll all the way down to the LAST option- Other reportable income START
Type "Real estate rebate on 1099-NEC" or some other description the IRS will understand and enter the amount AS A NEGATIVE AMOUNT (put a minus sign (-) in front of the number
Done
The 1099-NEC as well as the negating entry will both be on Schedule 1
@ghostrider25
[Edited 4/10/2025 I 9:28am PST]
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