My employer sent me a form 1099-NEC for my paid-time off benefits

[Ben82566]

They consider the benefits as compensations, and since my benefits exceeded 600$ this year, they sent me a 1099-NEC form with the amount of benefits I received reported as nonemployee compensation. I entered all the information in the self-employment, form 1099-NEC on TurboTax and everything was going well until I found out that I have to "select the business that generated this income or add a new business" and then "enter the rest of the information for this business in the business income topic".  

I don't understand if I did anything wrong or whether it's okay to report my paid-time off as an income generated from a business. 

[AliciaP1 · Accepted solution]

You need to identify the 1099-NEC as income that should have been reported on a W-2.

You will need to delete your entry and enter it again in order to report your 1099-NEC correctly.  Please follow these steps to do this:

1. Within your return in TurboTax Online search for Schedule C.
2. Click the Jump to Schedule C link in the search results.
3. If you get to a self-employment summary screen, delete the self-employment income line with the trash can icon.
4. If you get to the question Did you have any self-employment income or expenses? answer No. 

1. Click on Tax Tools on the left side of the screen.
2. Click on Delete a Form. 
3. Scroll down to your Schedule C and Schedule SE and click Delete if they are still there.
4. Search for 1099-NEC and select the Jump to link.
5. Enter your 1099-NEC according to the form you received and click Continue.
6. On the Describe the reason... screen enter "Award/Bonus"
7. Choose XXX employer reported this extra money on a 1099-NEC but it should have been reported on a W-2 and click Continue.
8. On the Filing Form 8919 screen click None of the Above (because your 1099-NEC and W-2 are not from the same company) and click Continue.
9. Continue through the interview and follow the instructions.

You will need to file Form SS-8 according to the instructions separately from your tax return.