1099-NEC Reimbursement Only - How to Offset "Income"

elgeedublu — Tue, 17 Feb 2026 03:27:03 GMT

Hi,

We replaced a common fence along one side of our home property and the property owner agreed to split the expense. The owner was represented by a property management company. I paid the fence bill and was reimbursed for the owner's part of the bill, but now I received a 1099-NEC for the reimbursement amount from the property management company. The 1099-NEC section in TT does not seem to have a way for me to offset this reimbursement, which in no way was income to me. Can anyone please advise how I can report the amount in the 1099-NEC section but then report what it actually was and remove the tax liability? Thank you.

Re: 1099-NEC Reimbursement Only - How to Offset "Income"

AnnetteB6 — Tue, 17 Feb 2026 13:30:09 GMT

Instead of entering the Form 1099-NEC in the Form 1099-NEC section of TurboTax, try using the steps below. The categories related to the entry of Form 1099-NEC do not really fit your situation and you are simply trying to report the income and then negate it.

These steps will report the income and report the same amount as a negative adjustment. Ignore any messaging that says do not enter Form 1099-MISC or Form 1099-NEC in this manner.

Go to the Income section of your return
Scroll to the Less Common Income category
Click Start or Update beside Miscellaneous Income, 1099-A, 1099-C
Scroll to the bottom of that section and click Start or Update beside Other reportable income
Answer Yes
Enter your description (include Form 1099-NEC as part of the description) and amount for the income you received
Enter your description and a negative amount for the income you received

The end result is that no additional income is reported on your return, but there are two income entries shown on Form 1040 Schedule 1 line 8z.

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1099-NEC Reimbursement Only - How to Offset "Income"

Re: 1099-NEC Reimbursement Only - How to Offset "Income"