topic 1099-NEC Buyer Commission Rebate in Get your taxes done using TurboTax

1099-NEC Buyer Commission Rebate

nathantruong83 — Mon, 15 Mar 2021 19:34:09 GMT

I've recently bought a new house and the real estate broker cut me a check of $4K after closing as a buyer rebate. I've recently received a 1099-NEC from him. As my understanding, if the rebate is issued out of the closing table, then it is taxable as my income. Is it true? Does it consider as a self-employment tax and it is higher than my regular W2 tax?

Best Regards,

Nathan

Re: 1099-NEC Buyer Commission Rebate

LinaJ2020 — Mon, 15 Mar 2021 20:47:53 GMT

It is taxable to you but should not be self employed. Here are the steps how you enter the 1099-NEC:

In TurboTax online,

Sign into your account, select Pick up where you left off
From the upper right menu, select Search and type in 1099nec and Enter
Select the Jump to 1099nec
Follow prompts to complete the section
On screen, "Does one of the these uncommon situations apply?" Select None of these apply to me
Next screen, " You can deduct expenses for your work", select No

The amount will show on line 8 of Schedule 1 and Form 1040 as Other Income.

Re: 1099-NEC Buyer Commission Rebate

nathantruong83 — Tue, 16 Mar 2021 20:53:54 GMT

Which TurboTax version should I use? Would Premier version fit my scenario?

Thanks,

Nathan

Re: 1099-NEC Buyer Commission Rebate

LinaJ2020 — Tue, 16 Mar 2021 21:43:27 GMT

Yes, absolutely. If you do not have any stocks or rental transactions, in fact, TurboTax Deluxe will be good enough.

Re: 1099-NEC Buyer Commission Rebate

theCurious1 — Sat, 10 Apr 2021 19:24:53 GMT

I'm in a similar situation and was told that the buyer agent rebate would only be taxed when I sell the house in the future as a cost-basis adjustment.

How would I file the 1099-NEC such that it wouldn't tax me for 2020?

Re: 1099-NEC Buyer Commission Rebate

ColeenD3 — Tue, 13 Apr 2021 14:25:54 GMT

Reposting the answer from LinaJ.

In TurboTax online,

Sign into your account, select Pick up where you left off
From the upper right menu, select Search and type in 1099nec and Enter
Select the Jump to 1099nec
Follow prompts to complete the section
On screen, "Does one of the these uncommon situations apply?" Select None of these apply to me
Next screen, " You can deduct expenses for your work", select No

The amount will show on line 8 of Schedule 1 and Form 1040 as Other Income.