NSF Review Panel

In 2023 I served on a review panel (provided review services) for the National Science Foundation (NSF). I traveled to Washington D.C. to do so. They paid us a fixed sum of money (documented with a 1099-NEC) and advised us to track our travel expenses to deduct them on our taxes.

I purchased TurboTax Home and Business Download. I entered the 1099-NEC under Personal --> Personal Income. I then entered the travel expenses under Business--> Business Income and Expenses. However, now it is asking me to fill in information for a "S-Corp". Do I need to found a corporation to deduct my expenses?!

1547

1 Best answer

Expert Alumni

Mar 24, 2024 7:59:40 AM

No, the income from Form 1099-NEC and the related expenses should not be reported on Schedule C (Self-Employment). You will need to delete these entries and follow these steps:

Open your return and go to Federal >> Wages & Income >> Other Common Income >> Income from Form 1099-NEC. Click Start/Update.

Or enter 1099-nec in the Search box located in the upper right of the program screen. Click on Jump to 1099-nec.

On the screen Did you get a 1099-NEC?, click on Yes
On the screen Do You Want to Enter Your 1099-NECs Now?, click on Add a 1099-NEC
On the screen Let's get the info from your 1099-NEC, enter your information and click Continue
On the screen Describe the reason for this 1099-NEC, enter a reason and click Continue
On the screen Does one of these uncommon situations apply? Select This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby and click Continue.
Repeat these steps (add another 1099-NEC) and enter your total expenses in Box 1 as a negative number.

These entries will report the net income on Schedule 1 Line 8z Other Income. The total from Schedule 1 Line 10 flows to Form 1040 Line 8 as ordinary income.

Expert Alumni

Mar 24, 2024 7:59:40 AM

No, the income from Form 1099-NEC and the related expenses should not be reported on Schedule C (Self-Employment). You will need to delete these entries and follow these steps:

Open your return and go to Federal >> Wages & Income >> Other Common Income >> Income from Form 1099-NEC. Click Start/Update.

Or enter 1099-nec in the Search box located in the upper right of the program screen. Click on Jump to 1099-nec.

On the screen Did you get a 1099-NEC?, click on Yes
On the screen Do You Want to Enter Your 1099-NECs Now?, click on Add a 1099-NEC
On the screen Let's get the info from your 1099-NEC, enter your information and click Continue
On the screen Describe the reason for this 1099-NEC, enter a reason and click Continue
On the screen Does one of these uncommon situations apply? Select This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby and click Continue.
Repeat these steps (add another 1099-NEC) and enter your total expenses in Box 1 as a negative number.

These entries will report the net income on Schedule 1 Line 8z Other Income. The total from Schedule 1 Line 10 flows to Form 1040 Line 8 as ordinary income.

New Member

Apr 7, 2024 12:59:18 PM

Hi,

I'm in the same situation trying to include my NSF review panel nonemployee compensation. But when I try to add a 1099-NEC, the first question is 'What type of income is on your 1099-NEC?' and the only options are 'self-employment', 'Farm income', 'Hobby', 'Lawsuit settlement', 'Medicaid waiver payments that qualify as difficulty of care', and 'Income that should've been reported on a W-2'. The only one that would make sense would be 'self-employment', but then it will be in section C. And if I don't fill out this section, Turbotax doesn't allow me to file my tax return with this additional income. What should I do?

Thank you!

Expert Alumni

Apr 8, 2024 1:31:28 PM

Choose "Hobby," which will allow you to report this as "Other Income." The follow the steps given earlier in this thread.

@matita

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