I was gifted a trip from a company that my employer partners with (it was merit-based). I received a 1099NEC from that company. How do I categorize the income?

[sarahmartin65]

I work for a brokerage who partners with insurance carriers. Those carriers provide incentives to their partner companies. My brokerage firm was chosen to receive the incentive in 2024, in this case: a trip. My brokerage then chose me as the recipient of that trip based on merit. I then received a 1099NEC form from that insurance carrier (putting a value on the trip I had won). How do I categorize this "income" if it doesn't fall into any of the choices (self-employment, farm, hobby, lawsuit, etc.)

[DavidD66]

You need to report the 1099-NEC as self-employment income.  It was an award for performance, which is compensation.  It wasn't a random prize; it was income in the form of a trip.  If it wasn't earned income, it would have been reported on a Form 1099-MISC.  For information on how to report, see:  How to File Taxes with IRS Form 1099-NEC