1099-NEC From Former Employer

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My wife received a 1099-NEC from her former employer. She was with the company long enough that she was “vested” and received quarterly payments last year. These payments were based on her previous performance with the company, no work was performed for this company in 2023. A delayed bonus of sorts.

TurboTax wants her to pay self-employment taxes. That doesn’t seem right. Is it?

Should we push the company for a W2? She was not employed by them at all in 2023.

Is there some situation I should indicate when entering the information to avoid being considered self-employed? If she is considered self-employed do we deduct accordingly?

[DawnC]

1099-NEC is for self-employment income.   And yes, as a self-employed person, she can deduct business expenses on Schedule C.  

What can I deduct on Schedule C?