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Level 1
posted Feb 22, 2023 9:39:04 AM

Insurance renewal commissions for retired agent

Hello, how do I report 1099_NEC income using Turbo Tax? I do not need to file schedule C but Turbo Tax prompts me to complete schedule C. The IRS has ruled that insurance policy renewal commissions are not subject to Social Security taxes.

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1 Replies
Expert Alumni
Feb 22, 2023 10:04:17 AM

When you are entering the 1099-NEC, it will ask you about uncommon situations.  If you choose This was not money earned as an employee or self-employed individual, it is a sporadic activity, the income will go to Other income instead of Schedule C.    The IRS expects this income to go on Schedule C, so you may receive an inquiry.