1099nec income

[johnyan]

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]

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.

[johnyan]

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]

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.