1099-NEC

[sbogu]

My brother had to take a class to update his teaching license.  The school corporation reimbursed him for the cost but issued him a 1099-NEC.  Confused as to how to add this to his 1040 as he is not self employed.  Any suggestions??

[AamilD]

Please follow the steps below to enter 1099-NEC if it is not related to self-employment:

1. Click on Tax Home from Left Side Menu.
2. Click on Wages & Income from main screen.
3. Scroll down till you see the section titled "Other Common Income". Within this section, there will be an option for Form 1099-NEC. Click Start next to it.
4. Then you should see a page titled "Did you get a 1099-NEC?". Click Yes on it and enter the information.

This method will allow you to enter 1099-NEC for income not related to self employment.

[sbogu]

When I follow these instructions, it leads me to complete a Schedule C wanting details of his business...the problem is there isn't one.  Would I choose the option this "it is a sporadic...?" 

[DanP0428]

That sporadic option is the one that will work.  It is the one I use for situations like this.

[Vanessa A]

Yes, you can use the sporadic option or you can enter it as other income and keep the form with you.  It is possible he would be contacted by the IRS because there is a missing 1099-NEC, but a short explanation would solve the problem.  This form is newer and still a lot of wrinkles with people issuing them.

 To enter this as Other Income select the following:

• Federal
• Income and Expenses
• Scroll down to Less Common Income and click Show More
• Start next to Miscellaneous Income
• Start next to Other Reportable Income

This will put it on line 8z of your schedule 1 as other income.