I have a regular job as an academic and get a W2 form. Once this past year, I gave a lecture at another university and received an honorarium, and so I got a 1099-NEC for that. So I'm now being treated as self-employed by my own business, which is Education. This is fine, I guess, but I'm confused about how to describe my participation in my "business." I am a full-time educator, but the lecture for which I received the 1099-NEC was not full-time work. It was a one-off. So to the question of whether I "materially participate" in my business of Education, I'm guessing the answer is "no"? Although I materially participate in a job in education that gives me a W2, I do not materially participate in my self-employment education "business." Please confirm if this sounds right to you.
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Sounds right. When you report the 1099-NEC you will have the opportunity to say it is other income not related to a business.
@Bsch4477 , where does it give me the opportunity to say this income isn't related to a business? I didn't get prompted for that. Maybe I should delete and start again?
Definitely is "materially participating."
Income >Choose what to work on >Less common income >Other income not already reported >other wages—yes
continue until Source of other earned income >Other
enter “lecture fee on 1099-NEC” and amount.
Result appears as other earned income on your 1040 line 1h.
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