How do I report unearned/passive income in TurboTax? I receive profit share from Keller Williams Realty that is not subject to self employment tax.

[birdgrandma]

They provide a 1099NEC for this income. For the past 3 years I have provided documentation to the IRS and they say I do not owe self employment taxes. Since KW won't correct the 1099 I don't know how to enter the income into TurboTax

[MonikaK1]

Form 1099-NEC is generally intended to be used for nonemployee compensation that is earned by a contractor or other self-employed individual, but you can enter it in TurboTax and identify the reason for the payment if it was other than self-employment income:

• In Wages and Income, select Other Common Income and See More
• Select Form 1099-NEC
• Answer the questions that appear, and enter a description of the reason for the payment
• At 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 (this is not common)" if that is the choice that best reflects the nature of the payment

For more information on Forms 1099-NEC, see this TurboTax article.

[Carl]

I would suggest you inform the IRS that this is the 4th year in a row the income has been incorrectly reported as earned income on the 1099-NEC. Maybe they'll finally take action against the issuer. (Probably wouldn't be cheap for the issuer either.)

[birdgrandma]

Thank you for your reply...it worked perfect