Am I considered to be self-employed if I received Nonemployee Compensation as a retiree in the form of stock awards?

[ThomasM125]

No, that would not be considered self-employment income since you are not providing goods or services for compensation.

[marvingee_02090]

The only other option in Turbo Tax that might apply is "Income that should've been reported on a W-2." Since I received a stock award and dividends as part of my compensation after my retirement, should a W-2 have been issued or a different type of 1099 form?

[ThomasM125]

Yes, the value of the stock awards should have been reported as wage income on a W-2 form.

[marvingee_02090]

Turbo Tax suggests that I file Form SS-8 so the IRS can determine my worker status for purposes of tax withholding. I realize that the stock awards and dividends are taxable, but as a retiree, was not issued a W-2 because I was not employed at the time the monies were received. Do you agree that Form SS-8 must be filed with the 1099-NEC, or will my former employer be required to issue a W-2 instead?

[AmyC]

Let's go both directions:

Option 1 - the payor issues a corrected NEC with no income and a w2 for you. You can then enter your w2 and are good to go.

Option 2 - the payor does not issue any changes. Delete the 1099-NEC you have entered. see How to Delete. Now, I recommend you close the program and clear cache and cookies, but it may not be necessary.

Let's enter the 1099-NEC. Follow these steps:

1. Open your return to the federal income section.
2. Locate income from Form 1099-NEC
3. Start/ Edit/ Revisit/ Review
4. Select Yes to did you receive NEC
5. Select add a 1099 -NEC or edit
6. Enter payer, id, and compensation
7. Continue
8. Reason for NEC -stock awards
9. Continue
10. Uncommon Situation - select not money as employee or self-employed. Sporadic activity
11. Continue
12. Done

The NEC would not have been my first choice. The 1099-NEC is for each person to whom the taxpayer has paid at least $600 during the course of a business for the following.

•Services performed by someone who is not an employee, including parts and materials (box 1),

•Cash payments for fish (or other aquatic life) purchased from anyone engaged in the trade or business of catching fish (box 1), or

•Payments to an attorney for legal services (box 1).