How do i show a 1099 nec as reported by the company to me as employment but wasnt employment?

Forum|Forum|2 years ago
March 21, 2024
2 replies
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I got a loan for solar that included a payoff to the old solor company. the new solar company sent it to me as a 1099 nec instead of the old company. the new company said because it was a payoff they wont change the 1099nec. even though it was part of my loan

TurboTax Live Self Employed

Bsch4477

Employee

When you report the 1099-NEC the interview will give you the opportunity to say that the funds were not income from a business.

ThomasM125

You can report the income as "Other" income, as mentioned by @Bsch4477, then enter a negative adjustment to income to credit it back off of your return.

You can make that adjusting entry in TurboTax as follows:

1. From the Federal menu in TurboTax find Wages and Income

2. Find Less Common Income

3. Choose Miscellaneous Income, 1099-A, 1099-C

4. Choose Other Reportable Income

5. Enter a description of the adjustment (mis-reported income for instance) and the adjustment as a negative number

Choose the situation for the payment stating that the money is not earned as an employee or self-employed person so it will show up as "Other" income on your tax return: