1099-NEC as part of pension

[madams017]

My dad chose along with a pension when he retired to continue to receive part of a paycheck (?) That is what his pension person told me. Dad died and my mom gets his pension and pay. However, this year instead of a 1099-MISC she received a 1099-NEC for the pay portion. This makes Turbotax set up a schedule c and ask what it was for (retirement?). Is this going to mess up my mother's taxes?

[SharonD007 · Accepted solution]

The Form 1099-NEC will not mess up your Mother’s taxes. Please follow the steps below to delete the 1099-NEC and re-enter it so it does not create a Schedule C.

1. Launch TurboTax
2. Search for 1099-NEC with the magnifying glass tool at the top of the page
3. Click on the Jump to 1099-NEC link at the top of the search results 
4. Click on Delete by the 1099-NEC previously entered
5. Click Add a 1099-NEC
6. Enter the information as shown on your form
7. Type Retirement Income on the screen that says “Describe the reason for this 1099-NEC”
8. The next screen will say “Does one of these uncommon situations apply?” Select “This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby” and select Continue. 

 

The income will be reported as “Other Income.”