@npierson7 wrote:
No, you cannot do that. If you receive 1099-NEC it is self-employment income and it is subject of self-employment tax and must be reported on Schedule C. Otherwise, it could cause penalties imposed on a top of unpaid taxes, plus interest and fees.
This is dead wrong, as you would see if you had read fellow Expert @ReneeM7122 's comment previous. If a payer uses a 1099-NEC, that will create the presumption at the IRS that the income is self-employment, but the presumption may be rebutted. In the specific case of egg donation and other types of participation in medical studies, the income is not earned income from working unless the subject regularly participates in such studies as an "ongoing trade or business." Turbotax even has a checkbox for 1099-MISC income to indicate that it is payment for a medical study. (In 2020, this checkbox only appears for 1099-MISC and not 1099-NEC, but I have other problems with the 1099-NEC workflow as I have discussed elsewhere.)
