topic 1099-NEC Non employee compensation in Get your taxes done using TurboTax

1099-NEC Non employee compensation

popsjohn — Mon, 23 Feb 2026 10:44:08 GMT

I am a retired employee of a Bank that purchased a split dollar life insurance policy on me when I was employed. I have been receiving 1099-misc forms in previous years and a 1099-NEC last year and this year for a calculated amount that is supposed to be the economic benefit to me. This year Turbo Tax is wanting me to complete a schedule C. This is new this year. I do not have a business, this is not business income but apparently it is taxable compensation because I am a former employee. What should I do?

Re: 1099-NEC Non employee compensation

popsjohn — Wed, 18 Jan 2023 21:58:50 GMT

I did some more playing around with the software and selected under uncommon situations: This is not money earned as an employee or self-employed individual, it is from sporadic activity or hobby. This worked and didn't require a schedule C.

Re: 1099-NEC Non employee compensation

DianeW777 — Tue, 24 Jan 2023 14:59:03 GMT

You are correct, this is not self employment income, and should be reported on Form 1099-MISC. However, for you it is easily reported without using Schedule C, which would be incorrect.

This income sounds like group term life insurance benefits that exceed $50,000. For this reason you are receiving the reporting form. Since you are retired, they can no longer add this to your wages.

To report this income you can use the following steps.

Go to the Wages and Income section of TurboTax

Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
Select Other reportable Income > Enter a description (GTL Retired) and the amount