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Returning Member
posted Apr 13, 2024 1:21:41 PM

Why does 1099-NEC consider this income a business

Why would I have to create a schedule C for the Florida's 1st responder bonus that I entered under the 1099-NEC, now it is calling this a business.

0 1 1940
1 Replies
Level 15
Apr 13, 2024 9:08:12 PM

To avoid sched C

This applies to Form 1099-NEC, 1099-K, 1099-Misc et al and to other taxable income without a report.

E

nter it in the personal section, 

Other Common Income 

Form 1099-MISC

.

 To ensure it does not go to Schedule C (self-employment), you will answer the follow-up questions accordingly. 

 

On the 

Describe the reason for this 1099-MISC 

screen, enter 

a description

 of the other income. (award/stipend)

Select 

None of these apply

 on the 

Does one of these uncommon situations apply?

 screen.

Select 

No, it didn’t involve work like my day job 

on the 

Did the involve work that's like your main job?

 screen.

Select 

I got it ONLY in 2023

 on the 

How often did you get income for?

 screen.

Select 

No,

 

it didn’t involve intent to earn money

 on the 

Did the work involve an intent to earn money?

 screen.

 

Answering differently to any of these questions will imply self-employment and generate Schedule C.  

 

Please give feedback. If this helps click “Best Answer”