Received 1099NEC for referral bonus

Forum|Forum|3 years ago
February 2, 2023
1 reply
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Hi, I referred a friend to a job-searching platform and he found a job. The platform gave me a $1000 referral bonus but they sent me a 1099NEC. How should I report it?

Best answer by PattiF

This would be entered as Other Income that would not be taxed as self-employment.

You can enter the 1099-NEC this way if it was not received for self-employment

Wages & Income
Other Common Income
Select Income from a 1099-NEC
Enter the payer's name
EIN Number
Amount you received
Describe the reason for this 1099-NEC = State what it was for (referral)
Does one of these uncommon situations apply?
Click This is not money earned as an employee or self-employed individual,

PattiFAnswer

This would be entered as Other Income that would not be taxed as self-employment.

You can enter the 1099-NEC this way if it was not received for self-employment

Wages & Income
Other Common Income
Select Income from a 1099-NEC
Enter the payer's name
EIN Number
Amount you received
Describe the reason for this 1099-NEC = State what it was for (referral)
Does one of these uncommon situations apply?
Click This is not money earned as an employee or self-employed individual,

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AnonBP

I'm in a similar situation with receiving a 1099-NEC for a referral bonus. I was a customer to the business that gave me the referral bonus for referring a family member to the business.

When filing online with TurboTax, I'm asked about the type of income and only provided with the following options:
-Self employment income

-Farm income

-Hobby

-Lawsuit settlement

-Medicaid waiver payments...

-Income that should've been reported on a W-2

I don't believe any of these apply, and I don't get any options like what's listed in steps 8 and 9 on the comment that I'm replying to. So I'm not sure how to proceed.

AmyC

Employee

Delete the 1099-NEC you have entered. see How to Delete. Now, I recommend you close the program and clear cache and cookies.

Let's enter the 1099-NEC. Follow these steps:

Open your return to the federal income section.
Locate income from Form 1099-NEC
Start/ Edit/ Revisit/ Review
Select Yes to did you receive NEC
Select add a 1099 -NEC
Enter payer, id, and compensation
Continue
Reason for NEC -referral bonus
Continue
Uncommon Situation - select not money as employee or self-employed. Sporadic activity
Continue
Done