1099-NEC services refund

[SeaAd1751]

Hello,

Last year I sold my primary residence and due to my real estate agent not performing services promised, they refunded me $4,400 of the commissions paid for the sale of my house. I received a 1099-NEC with $4,400 in box 1. Please confirm if a refund of fees paid to a real estate agency should be considered taxable income to me on a 1099-NEC.

Thank you!

[MarilynG1]

Yes, the amount reported on the 1099-NEC will be reported as income to you.   However, the 1099-NEC is usually issued to report self-employment income, so you will have to indicate that in your entry.

Enter the info from your form, and on the next screen, indicate that 'this is not money earned from employment...'

@SeaAd1751 

[SeaAd1751]

Thank you,  I was hoping a refund of money I paid for a service a month prior wouldn't be taxable income, but it sounds like it is.

Thank you