Should I file a Schedule C or something else with my 1099-NEC even though this was simply a cash-out for a terminated HRA by my former employer.

[lutesly]

The HRA was funded by the employer while I still worked. The cash out is taxable, but I don't know how to handle the 1099-NEC since I did no work for it in the year I received it. It was a fringe bene from when I did work.

[Vanessa A · Accepted solution]

No, you would not use a Schedule C for a cash out of a terminated HRA. This would be reported as other income. To enter the 1099 NEC as non-self-employment income take the following steps:

1. Income
2. 1099-Nec under Other Common Income
3. Enter the information from the 1099-NEC
4. Continue through to Does one of these uncommon situations apply?
5.  Select "this is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby (this is not common) depending on the option you have (this will not list it as hobby income just as Nonemployee Compensation from 1099-NEC)

Taking these steps will put the income on Schedule 1 line 8z.