How do I file the 1099NEC I received if my employer gave me the money as a gift? I was not a contractor for them,it was x amount of money they gave us as a farewell gift.

[Anonymous]

I was flight crew and my company filed for bankruptcy due to covid. As a farewell gift they gave to each employee an x amount of money claiming that is a "gift" but now they sent us a 1099NEC. How am I supposed to add this to my taxes?

[Opus 17]

Everything of value provided to you by your employer in recognition of your services is wages and should be reported on your W-2 and is subject to regular tax withholding plus Social Security and Medicare tax.  In this particular case, you must enter the 1099-NEC, and then you will see a list of special circumstances including one that says something like “I received this 1099 from the same employer who also paid me on a W-2.“ Check that box.  TurboTax will prepare a special form to collect the 7.65% employee half of Social Security and Medicare tax but you will not have to pay the 15% self-employment tax. The income will also be added to your wages and subject to federal and state income tax.

[gsswimfan]

Have a similar situation - my son-in-law is required to go to classes for his apprenticeship every so many weeks.  Instead of being paid by his employer for those hours he is paid by the union and issued a 1099NEC.  However, he is not providing any kind of service to them he is just being paid to attend the union's appreticeship training.  He does not have a self-employed business.  How do I handle this - where is the special circumstances drop down?  I have not been able to find that option.  Thanks!  

[DianeW777]

You can report this amount as Other Income.  Open your TurboTax Account

1. In your Federal return, choose the tab for Wages & Income
2. Scroll down to Less Common Income you may have to click Show More to view 
3. Select start or update next to the last topic titled Miscellaneous Income, 1099-A, 1099-C;
4. Scroll down to the last option titled Other reportable income and select start or edit;
5. When it asks, "Any other reportable income?" say yes then you will make one entry
6. Enter this description: Union Apprenticeship and the amount
7. See image below.

[sdbrown]

Ther is no form for 1099 NEC so where do I enter the information

[gsswimfan]

Record it in Other income.  Easiest way to do it will be to go to forms and record the amount on line 8 of 1040.  The program should then automatically fill out line 9 of schedule 1.  If I remember correctly the program will ask you a couple of questions.

I did verify with the IRS that this is the correct place to record it for my son in law's apprenticeship training through his union.

Good luck!