1099-NEC, hobby or self-employment?

[butron]

My background is in science and during 2025 a friend from my past called me and asked if I could help him review some scientific funding proposals that his private company manages as a service for a non-profit. He did say that I would be paid for every proposal I reviewed. I accepted, not so much for the money but for the fun of reviewing science proposals and to help my friend. In the end he paid me $4,000 for what was substantial work and now I have received a 1099-NEC reporting this income. This was the first time I helped my friend and it is unlikely to happen again? Can I call this a "hobby" rather than self-employment? My argument is that I did not do it for the money, it is not regular work, and it is unlikely to happen again.

[ReneV4]

Since this Form 1099-NEC was hobby income, you should not report it as self-employment income.

Instead, enter the total from Box 1 of the Form 1099-NEC as follows:

1. Go to Wages & Income
2. Select, "Other Common Income"
3. Select, "Form 1099-NEC"
4. Select, "Hobby" and enter the information

Although you will not be able to deduct expenses, you will avoid the self-employment status and additional self-employment taxes.