topic 1099-NEC in Deductions & credits

1099-NEC

joefoxva — Mon, 08 Mar 2021 00:51:45 GMT

I received a 1099-NEC from my educational institution for healthcare coverage. Do I need to claim it? It is not a service in that I did not use any health health insurance.

Re: 1099-NEC

npierson7 — Mon, 08 Mar 2021 01:04:58 GMT

That does not seem to be a correct form, unless you worked for your educational institution and the form reflects your payments for services.

Re: 1099-NEC

joefoxva — Wed, 10 Mar 2021 14:37:11 GMT

This was not a payment for services. Payment for services was zero this year while they still provided my health care. The institution is unwilling to change what they did. Next challenge is how to document it properly with the IRS on our tax return.

Re: 1099-NEC

ColeenD3 — Wed, 10 Mar 2021 15:10:43 GMT

The only way to properly document it is on Schedule C. The only place that a 1099-NonEmployee Compensation form can be entered on Schedule C.

It is understandable that you do not wish to do this, so the only other alternative is to improperly include it as other income with an explanation and hope the IRS will agree. Your description can read, "1099-NEC healthcare coverage".

You can add it as Other Income.

I'll choose what I work on
Less Common Income select Start (or Update) for
Miscellaneous Income.
Other reportable income and you can enter your own description(s) and amount(s)

Re: 1099-NEC

joefoxva — Wed, 10 Mar 2021 15:36:16 GMT

Thank you for the responses.

This is confusing since as a student I received no money and the service was optional (did not need go to the doctor), how can it be considered compensation? In the past years the educational institution providing the healthcare was not taxable to me.

Re: 1099-NEC

Hal_Al — Wed, 10 Mar 2021 17:34:58 GMT

All income is reportable, especially income reported on an IRS form, e.g. 1099. It appears that the school paid your health care premium (or imputed income based on the value of having free access to health care if needed).

You definitely need to report the income. The question is how. I like ColeenD3's suggestion, for how to enter it.

But, be advised that The IRS considers anything on a 1099-NEC to be self employment income. If you try reporting 1099-NEC income as anything else, there is a chance of hearing from the IRS.

Re: 1099-NEC

joefoxva — Wed, 10 Mar 2021 17:09:42 GMT

Thank you all. It is down to the employer-employee relationship that determines the treatment. So taxable. Ugh....