topic 1099 NEC in Get your taxes done using TurboTax

1099 NEC

isantos — Mon, 23 Feb 2026 10:42:36 GMT

I received a 1099-NEC for a Christmas bonus, I'm not under their payroll but because I do work for someone else in the same building they gave everyone a Christmas bonus. Now I'm filing my taxes and its telling I need to create a business to report it under Schedule C. This was not business related just a Christmas bonus? Please help.

Re: 1099 NEC

DoninGA — Thu, 19 Jan 2023 14:21:53 GMT

To enter a Form 1099-NEC that is not for self-employment -

Click on Federal (Personal using Home & Business)
Click on Wages & Income (Personal Income using Home & Business)
Scroll down to 1099-MISC and Other Common Income
On Income from Form 1099-NEC, click the start or update button

Or enter 1099-nec in the Search box located in the upper right of the program screen. Click on Jump to 1099-nec

On the screen Did you get a 1099-NEC?, click on Yes
On the screen Do You Want to Enter Your 1099-NECs Now?, click on Add a 1099-NEC
On the screen Let's get the info from your 1099-NEC, enter your information and Continue
On the screen Describe the reason for this 1099-NEC, enter a reason and Continue
On the screen 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 Continue

This will enter the income on Schedule 1 Line 8z. The total from Schedule 1 Line 10 flows to Form 1040 Line 8 as ordinary income.

Re: 1099 NEC

isantos — Mon, 23 Jan 2023 15:13:06 GMT

thank you for your response for some reason I didn't see that option but now I do, thanks again.

Re: 1099 NEC

NQDC income — Sun, 19 Feb 2023 23:43:25 GMT

Appreciate your help above! Follow-up: I also received a 1099-NEC but I'm not self-employed. I received this form because my previous company decided to repurchase my shares (which I had purchased after exercising NQ options). The amount listed on box #1 /Nonemployee compensation/ is the TOTAL proceeds from the repurchase (not just the gains on top of my tax basis).

Two questions for you:
1. Should I follow the same steps to enter this into TurboTax?

2. Is the amount on the form correct? Shouldn't it only reflect the gain (proceeds less basis)?

TIA for your help!

Re: 1099 NEC

BrittanyS — Mon, 20 Feb 2023 14:59:44 GMT

A buyback of stock should be reported as a sale of an investment on the Schedule D. For the sale, you will enter the full sale proceeds and the cost basis and difference will result in the capital gain.

I would recommend contacting your employer due to the buyback of stock is typically not reported on a 1099-NEC.

@NQDC income