Hi,
I accepted a Section8 tenant in 2021. She couldn't afford to pay the security deposit. The Housing authority paid $1800 for her as security deposit.
The Housing office sent me 1099-MISC for the rent money I received from them, which is correct. But they also sent me a 1099-NEC and it says in BOX 1 "Nonemployee compensation".
Should I report it as self-employment income? But then I need to pay extra tax on it. Which I don't want to do because when the tenant eventually moves out, I'm supposed to return the deposit if the property is in good condition.
Please Help! Thank a lot!
