1099-NEC / Insurance reimbursement

[bttaxes]

My spouse is included on my health insurance, her employer pays us the difference in cost to have her on my insurance. They sent us a 1099-NEC for the payments, when I enter this info in none of the options seem to apply so I select other then it wants me to do a schedule C and select a business? Is this the point I should be paying to get my taxes done by professionals, the difference after adding this is about -$650.

[JamesG1 · Accepted solution]

This is taxable income but it is not self-employment income to be reported on Schedule C Profit or Loss from Business.

Report the income as Other Income on Schedule 1 line 8z and line 8 on IRS Form 1040.  Follow these steps:

• Select Federal from the left side menu.
• Click on Wages & Income.
• Scroll down to Less Common Income.  Click Show more.
• Click Start / Revisit to the right of Miscellaneous income….
• Click Start / Revisit to the right of Other reportable income.
• At the screen Other Taxable Income enter ‘sales incentive payment’. 

View the entries at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.