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How to account for bogus 1099-NEC?

Forum|Forum|4 years ago
April 16, 2022
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I believed I received a 1099-NEC for incorrect reasons. Context -- I was forced to move out of my rental apartment by a new owner, and in the process was given a small sum to assist with moving expenses. That sum is now on the 1099-NEC.

Given that it is now a little too late to reach out to the apartment owner to get them to change/retract the 1099-NEC, how should I account for this within TurboTax before filing this Monday?

Best answer by PattiF

The 1099-NEC that you received is not for NonEmployee Compensation. This is entered in TurboTax so that it doesn't create a business return for you. It will be taxed as other income.

To enter this into your TurboTax account follow these steps:

Select Income & Expenses.
Scroll down to Less common income and select show more.
Scroll to the line Miscellaneous Income, 1099-A, 1099-C, and check start.
On the page Let's Work on Any Miscellaneous Income scroll to the line Other reportable income and click start.
On the page Any Other Taxable Income select yes.
On the page, Other Taxable Income enter the description and amount.
Select continue.
Select done on the next page

P

PattiFAnswer

The 1099-NEC that you received is not for NonEmployee Compensation. This is entered in TurboTax so that it doesn't create a business return for you. It will be taxed as other income.

To enter this into your TurboTax account follow these steps:

Select Income & Expenses.
Scroll down to Less common income and select show more.
Scroll to the line Miscellaneous Income, 1099-A, 1099-C, and check start.
On the page Let's Work on Any Miscellaneous Income scroll to the line Other reportable income and click start.
On the page Any Other Taxable Income select yes.
On the page, Other Taxable Income enter the description and amount.
Select continue.
Select done on the next page

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