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pacmoon
New Member

I have a 1099-NEC, but it is from an insurance company as reimbursement for temp housing and related expenses, not self-employment. Therefore I have no business to enter

This reimbursement was after a complete loss house fire.
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DMarkM1
Expert Alumni

I have a 1099-NEC, but it is from an insurance company as reimbursement for temp housing and related expenses, not self-employment. Therefore I have no business to enter

The insurance company has reported that payment type on the wrong form.  A 1099-NEC is to report non-employee compensation.  That is payment for services/work. 

 

Further, insurance reimbursements for losses are not normally reported on an income form at all, as they are not treated as income.  You would not normally report the payment on you tax return unless claiming the loss as an itemized deduction and then you would reduce that deduction by the amount of your reimbursement.  

 

You should contact the insurance company to find out why they issued a 1099-NEC and if applicable have them issue a corrected form to delete that income report.

 

 

 

 

 

 

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1 Reply
DMarkM1
Expert Alumni

I have a 1099-NEC, but it is from an insurance company as reimbursement for temp housing and related expenses, not self-employment. Therefore I have no business to enter

The insurance company has reported that payment type on the wrong form.  A 1099-NEC is to report non-employee compensation.  That is payment for services/work. 

 

Further, insurance reimbursements for losses are not normally reported on an income form at all, as they are not treated as income.  You would not normally report the payment on you tax return unless claiming the loss as an itemized deduction and then you would reduce that deduction by the amount of your reimbursement.  

 

You should contact the insurance company to find out why they issued a 1099-NEC and if applicable have them issue a corrected form to delete that income report.

 

 

 

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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