1099nec income

Forum|Forum|4 years ago
April 12, 2022
3 replies
29 views

I got some income from stock options with a company that I never worked for. Those options were awarded to me when one of my companies was acquired by them. Should the income be reported on 1099MIsc? Or why should I pay self-employment tax when I never worked for them?

Thank you for your help in advance.

John

kcho1348

Level 2

I play options a lot in the stock market, sometimes I got a stock split or merge, and my share of options increases or decreases or they just give me shares of a spin-off company.

If you did not work for that company, it is not earned income. If they give you 1099, then it becomes your income as a self employee, or some sort of income to schedule C, or investment income in schedule D.

I am no expert, my guest is just adding it into schedule D as an investment,

I could be wrong, that's what I would do.

johnyanAuthor

Level 2

It makes sense to treat it as investment income, but why is it reported on 1099nec though? Should it be on 1099misc? I am contacting the company for some answers. Thanks!

mesquitebean

Level 15

johnyan:

During the day TurboTax tax experts are posting in the forum, many of whom are CPAs/EAs. So you may get more comment here during the day if they see this thread.