Form 1099-NEC is for Non-Employee Compensation. You cannot report a Form 1099-NEC without filing Schedule C - Profit or Loss from Business. Reporting the payment on Schedule C will result in you having to pay self-employment tax of 15.3% (unless your earned income is above the social security threshold). If you want to report the payment as Other Income on Schedule 1 of Form 1040, you can create a Miscellaneous Expense on Schedule C for the same as the Form 1099-NEC. This will result in a net income of zero on your Schedule C and no self-employment tax. To then report the amount as Other Income in TurboTax:
- Type "Other Income" in Search and hit Enter
- Click on "Jump to other income"
- Answer "No" to "Did you get a 1099-MISC"
- Continue through the interview till you get to "Less Common Income" and click on it.
- Scroll to the bottom of the page and click on "Start" next to "Miscellaneous Income, ..."
- Click on Start next to "Other reportable income"
- Answer Yes to "Any Other Taxable Income?"
- Give a description (e.g. CT Hazard Pay) and enter the amount
- The amount will be reported as "Other Income" on Schedule 1 of Form 1040
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