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The 2500 is from a program for the community. They stated upon the completion of the orogram, that there would be money. This was a one time payment. What should I file it under? But like I said when I file it 1099-NEC it won’t allow my gambling winnings to be returned to me weirdly. Unless there’s another way. I received the 1099-NEC but as a reminder it says no employee compensation
What do you think I should do?
I’m confused and seeking help
If you add income to your return, even if it is not self-employment income, it will increase your overall income and overall tax liability. So, if you had taxes withheld from your gambling winnings, and were getting that withholding back, then when you add income that did not have taxes withheld, your income goes up, your tax liability goes up, but the amount that you already paid in, does not go up. So if your tax liability went up to more than you paid in with your gambling, then you would no longer be getting a refund.
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