The facility reported the payment incorrectly. Payment for participating in a medical research study is supposed to be reported on Form 1099-MISC, in box 3, not on Form 1099-NEC.
The simplest thing for you to do is enter it in TurboTax as follows.
- Go to Federal Taxes > Wages & Income > Income from Form 1099-NEC.
- Enter the information from the 1099-NEC: the payer's name, federal ID number (TIN on the form), and the amount of the payment in box 1.
- The next screen says "Describe the reason for this 1099-NEC." It doesn't matter what you enter. The description doesn't go on your tax return.
- The next screen asks "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."
The income will be reported as other income on Schedule 1 line 8z.
