I received a 1099-NEC for money issued in my name from SSA but was assigned to my law firm employer who pays my salary on W2. The NEC is correct, but not my income.

[chris215]

Can I just not report the 1099-NEC because it's not my income, or can I report it but not pay taxes on it? I also received a 1099-MISC for the same types of payments, but could opt to say none of it was taxable. No such luck with NEC. Help!

[DaveF1006]

You will need to report both the 1099-NEC and 1099-MiSC and then subtract out the income. To report the 1099 NEC and 1099-MISC.

1. Click on Federal > Wages & Income.
2. Scroll down to the Other Common Income section. 
3. Click on the Start/Revisit box next Form 1099-MISC. 
4. On the screen Did you get a 1099-MISC?  click on the Yes button.
5. On the next screen, Let's get the info from your 1099-MISC, enter the information from the 1099-MISC.
6. Next screen you will be asked to describe the reason you received the NEC
7. On the screen, Does one of these uncommon situations apply?  If none apply, select none
8. The next screen asks if this is like you main job. Here you will say no so that SE taxes are not taken out.
9. How often do you receive this money? Say you only received it in 2020.
10. Next screen asks if this was an intent to make money. Here you will say no.
11. Finish the section.
12. Now go back and repeat steps 1 and 2. In the third step, Click on the Start/Revisit box next Form 1099-NEC.
13. Repeat steps 4-12 with this 1099-NEC.

Now to subtract out the income.

• Click Federal > Wages & Income>all income>
• Go to the last selection, Miscellaneous Income and click Start
• Go to the last option, Other reportable income and click Start
• When it asks, "Any other reportable income?" say yes  
• Now in the description Box, type in non-taxable income from 1099-MISC. Enter the amount of that income with a negative number in front of it. Soon as you enter this, you see a summary screen. Select add more income.
• In the second description Box, do the same for the 1099-NEC.

[wmpyoungx]

Does this guidance apply to the desk-top CD Deluxe version? Thanks.

[RobertB4444]

Yes, these should work the same in either version.

@wmpyoungx