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March 4, 2025
Question

I am retired, where do i enter a 1099-NEC that represents is funding for medical purposes

  • March 4, 2025
  • 1 reply
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where is a 1099-NEC entered for funds that are retirement funding

    1 reply

    KrisD15
    March 4, 2025

    The 1099-NEC will be entered and treated as Self-Employment income. 

    Form 1099-NEC stands for Non-Employee Compensation and can only be treated as Self-Employment income. 

    Self-Employment income is subject to "Self-Employment Tax" (FICA).

     

    In TurboTax, you'll have to set up a business for the 1099-NEC. 

    Enter the 1099-NEC as income for this business.

    There won't be any expenses since there are no expenses relating to getting this 1099-NEC.

     

    As an employee, health plans provided by an employer are not considered wages. 

    This changes when you are no longer an employee.

     

     

    There is a deduction available to a self-employed taxpayer that pays for health insurance for their employees, which you would not ne eligible for. 

    There is also a deduction available for a self-employed taxpayer that provides their own health insurance coverage, however if your former employer subsidizes the plan you participate in, or your spouse is eligible to participate in an employer-subsidized plan, that deduction would not be allowed. 

     

    You could claim your portion of the premiums on Schedule A as medical expenses, although that would be treated like any other medical expense and only apply if you decide to itemized deductions. 

     

    Regardless, you will be charged Self-Employment tax on the income reported on Form 1099-NEC. 

     

     

     

     

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