Skip to main content
April 7, 2024
Question

Received a nonemployee compensation amount at retirement that was reported on 1099-NEC. Turbo tax wants to report this as a business. How do I turn off schedule C?

  • April 7, 2024
  • 1 reply
  • 0 views
No text available

1 reply

April 10, 2024

If the payment you received pertained to your former employment, your employer should have included it on your W-2 for your final year. 

 

If you did work for them as an independent contractor after your retirement, then the income would be correctly considered self-employment and reportable on Schedule C along with any deductible expenses.

 

To enter a payment that was incorrectly reported on Form 1099-NEC, you can go to Other Reportable Income. Delete the Form 1099-NEC entry that caused TurboTax to generate a Schedule C. The IRS information return matching programs will look for the amount to be accounted for on your return.

 

In TurboTax Online:

 

  1. Go to Wages and Income
  2. Scroll down to Less Common Income
  3. Go to Miscellaneous Income
  4. Select Other Reportable Income and follow the prompts. Enter a description of the reason for the payment.

 

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"