Your veteran husband requires more of an answer. If the 1099-NEC came VA family caregiver stipends, it is a non-taxable benefit and you should not have the form. Since you have a form, I think a state funded program like Medicaid Waiver or IHSS must have sent it to you- which makes it taxable income.
Follow these steps to enter the income- programs vary:
- You have the form, so it must be entered.
- Open your return to the income section
- Look for Other Income, Common income or uncommon situations
- Locate 1099-NEC
- While entering, select Medicaid waiver payments (hobby or not for profit could be used)
If the 1099-NEC came from the VA, you can contact them to see if they will send a corrected form with zeroes but that isn't likely. Which means, you need to subtract the income back out.
Follow these steps if the form is from the VA to subtract the income:
- Open to federal income
- Locate Miscellaneous Income, 1099-A, 1099-C, Start
- Scroll to the bottom
- Other reportable income, Start
- Other taxable income?
- Select YES
- Description 1099-NEC for VA care
- Amount, enter your negative amount, use a minus sign in front.
- Continue
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
