1099-NEC

[brottman]

I attended a conference, and they pad my wife and I a travel expense ($1600) stipend to attend, and we received a 1099-NEC. We paid about $1500 in airfare. It seems like I need to claim the $1600 as business income, and then deduct the travel expenses, but it wasn't really connected to my business. It was reimbursement for the travel. How do I handle this?

[SharonD007]

Please clarify if the conference you attended was related to your employment since you indicated that it was not related to your business.

[brottman]

It was tangentially related to my business--I do educational consulting, and it was an educational conference. 

Tangentially because it wasn't a flight reimbursement to do consulting per se.

[brottman]

And, it was issued in my wife's name, not mine.

All other attendees just got their flights reimbursed. We applied early and paid for our flights, so they gave us a lump sum and told us to deduct the flight costs.

[Hal_Al]

Since your wife doesn't have a business, her expenses are not deductible.  She has to report all the income as other income (line 8z of Schedule). 

After entering your 1099-NEC, you will encounter a screen titled "Does one of these uncommon situations apply".  Check the box "This is not money earned as an employee or self employed individual; it is from sporadic activity or hobby".

Checking that box will put the income on line 8z of Schedule 1 as "other income" .

Since the conference was related to your business, you can deduct your airfare (but not your wife's) as a business expense.

[brottman]

That makes sense. Thanks!!