Administrative stipend

[CFM37]

I received a 1099nec from a company that handles my companies marketing and media rights.  As part of my companies contract them there is a an allotment of money the media rights company will pay to various staff in my company based on how my boss wants to distribute.  They are considered administrative stipends for us.  

Is it correct say this is not business income?

[ShirlynW]

To enter the 1099-NEC, here are the steeps.

1. Sign in to TurboTax.
2. "Pick up where I left off."
3. Wages & Income > Less Common Income > Miscellaneous Income, 1099-A, 099C > "Start / Revisit."

      5.  "Other reportable income," >  "Start / Revisit."

      6.  On the screen, " Any Other Taxable Income?" answer "Yes."

    7.   Enter the 1099-NEC.

[CFM37]

Thanks

I have entered the 1099nec, my question is more about how I answer the questions that pop up.  I don't have my own business, but unless I choose one of the "less common" reasons for getting the NEC I am directed toward filling out a schedule C.  Since I am doing providing no service and goods specifically to the company for the stipend should I still choose none of the above when in the less common window in TurboTax since none of the options address stipends directly?  Thanks

[GeorgeM777]

It doesn't seem to have the characteristics of being wage income as it appears you are not an employee of the payor.  It seems this is other income and can be entered into TurboTax as such.  You have two options to choose from.  Both options will produce the same result on a tax return, and you won't have to address questions that relate to self-employment.

Here are the steps to enter the 1099-NEC as other income:

1. To enter other income in TurboTax online, click on Wages & Income, 
2. scroll down the page to Less common income, click on the drop-down arrow and select Miscellaneous Income.  
3. From the list select Other reportable income and respond to the questions on the screens that follow. 
4. On the screen, Other Taxable Income, you may see information indicating that you should not report a 1099-MISC in this section.  Just ignore that statement and enter your information.  

If you are using TurboTax CD/download, the process is similar.  After selecting the Personal tab, and the Personal Income tab, scroll down the screen to Less Common Income, and select Miscellaneous Income.  Enter your information. 

There is another section of TurboTax that directly relates to 1099-MISC but you can use it to enter your 1099-NEC too.  This section is Other Common Income.  Please note that when working through the Other Common Income section, you will see a screen asking whether your 1099 represents an intent to earn income/money, and while it may seem counterintuitive to select No, that is the response you need to select.  If you select Yes, TurboTax will report this income as self-employment income, and you will be back in the tax position you want to avoid.  Thus, select No, and continue through the application.

Both of the processes mentioned herein will produce the same result.  However, there are fewer screens to address if you decide to enter your 1099-NEC as miscellaneous income.  

@CFM37