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Returning Member
posted Apr 18, 2022 7:10:38 PM

Help with 1099-NEC

i received a 1099-NEC from a previous  employer. The payment was around 6700.00.I live in Kentucky and this was a payout from a lawsuit. The made two payments, one everything was taken out tax wise.  the other was paid in a lump sum with no withholdings taken out. I dont know where to imput this information because when the Turbotax checks for errors it comes up with something I do not understand. Form says Nonemployee Compensation. I need help with this please.

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1 Replies
Expert Alumni
Apr 18, 2022 7:34:43 PM

You received two payments but only the 1099-NEC is reporting taxable income.  Is that correct?

 

The IRS presumes that 1099-NEC income is income reported on IRS Form 1040 Schedule C Profit or Loss From Business and subject to self-employment tax.  Report the 1099-NEC as follows:

 

  • Go to the Search magnifying glass in the upper right hand corner of the screen.  
  • Enter '1099-nec'.
  • Click on 'Jump to 1099-Nec'.

This IRS FAQ explains lawsuits and taxable income.