1099-NEC

[Deshkar]

Although my initial question was answered, I still cannot determine how to offset the money from a 1099-NEC. I reported it as sporadic income as it was a one-time event.  I do not see anywhere in the TurboTax program to enter an expense to offset it as suggested......(my apologies if I'm being dense about this).

Our County Natural Resources Div. paid us from a Grant to perform habitat enhancement on our property.  We, in turn, paid that money to a business to do the work for us, so we did not incur income from this project, in fact, it cost us more than the allocated grant money.

There has to be some way to offset the money from the Grant as it was not income and was used for the intended purpose it was allocated.

[DMarkM1]

Yes, if you did not enter/report the income as self-employment income then there is no place to enter off-setting expenses. If, however, you enter the form as self-employed income (don't select one-time/sporadic) and treat it as a business then you can enter the expenses to offset it.  

Selecting one-time/sporadic directs the income to be treated like "Hobby" income and you cannot deduct expenses at the federal level.