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March 26, 2023
Question

I received a 1099-NEC after a drilling company paid a lease bonus to drill. Now turbo tax wants me to claim I am self-employed. This is not a business.

  • March 26, 2023
  • 1 reply
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Why did I receive a 1099-NEC instead of 1099-MISC on a lease bonus?

1 reply

March 26, 2023

The drilling company should have issued a 1099-MISC to report the lease bonus. You can contact them and ask if they can send a corrected form.

 

You can enter the 1099-NEC so that it won't be considered self-employment.

In your TurboTax account, go to:

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

Continue with the interview and answer the additional questions. If you add any expenses to be deducted, then the income will be considered self-employment.

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