Delete the entry you made and re-enter the 1099-misc again, paying close attention to the follow-up questions. Answering the follow-up questions differently than instructed below will generate a Schedule C. You can delete the Schedule C if the 1099-misc income is not self-employment income.
The 1099-misc does not generate a Form 2106 - that form is for employee job expenses, which are not deductible on your federal return. If your state allows the deduction, you can leave the form, but it will not be included with your federal return unless you fall into one of the employee categories in this FAQ.
To report the income as ordinary income not subject to self-employment taxes, delete the previous 1099 and re-enter:
- Describe the reason for this 1099-MISC > unused sick leave
- Do any of these uncommon situations apply > None of these apply *******
- Did the payment involve work like your main job > NO
- How often did you get the payment > got it only in 2023
- Did it involve an intent to earn money > NO
- Do you have another 1099-MISC > NO
*******If you choose strike benefits here, no other questions are asked and the income goes to where it should >> other income. So, if the union payment was strike benefits, mark that box, and you are done. You will still need to delete in incorrect 1099 and the Schedule C.
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