Question

Should I file a 1099 NEC from the state of Florida's First Responder Recognition Program? I started to and it seems to thing it' my spouses business? It's a bonus.

Forum|Forum|2 years ago
January 30, 2024
2 replies
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TurboTax Deluxe Online

Yes, you should report it. Since the "bonus" was reported on Form 1099-NEC, you will have to report it on Schedule C as self-employment income. You will need your own Schedule C. Do not report it on your wife's.

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soccermaniac015

I just figured this out! now I realized that I did it wrong on last years taxes and I should have gotten more money back. Ugh.

Report it on 1099 MISC form not 1099 NEC. Put the amount in box 3 of 1099 MISC. I had to read the back of the paperwork the State sent about 100 times and read forums to figure this stinking thing out. But my return went higher after I entered it in 1099MISC instead of the 1099NEC category which wanted me to create a Schedule C for a non existent self employment business. Making a note for next year in case we get this again.

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DianeW777

If the income is reported on Form 1099-NEC, you would not convert it to a 1099-MISC. The Form 1099-NEC is self evident that it would be considered self employment income. However, if you believe with confidence this would represent a hobby instead of a business you could choose to report it as a hobby. The business income allows you to deduct ordinary and necessary expenses needed to earn this income, while hobby does not allow expenses to offset the income at all.

This IRS link will help you: Business or Hobby?

Key elements:

A hobby requires you to report the income you received and under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions.
A business allows you to deduct the costs necessary to obtain the income. The law explains that 'you must be engaged in the activity to produce a profit'. The test under IRS tax law is that you must show a profit three out of every five consecutive years to be considered a business.

Once you decide what type of income this is you can use the links below to see how to report.

How do I report income from self-employment?

To enter hobby income and expenses in TurboTax please follow these steps:

Once in your tax return, Choose Wages and Income
Scroll down to Less Common Income and click Start to to right of Miscellaneous Income, 1099-A, 1099-C
Click Start to right of Hobby income and expenses

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soccermaniac015

Well the back of the 1099 NEC we received clearly states: "If you are not an employee but the amount in Box 1 is not self employment income, report the amount shown in Box 1 on the other income line (on Schedule 1 (Form1040))."

We are not direct employee's of the State nor are we self employed and the income is supposed to be a gift/bonus. So the only way to get it to other income line is by adding it as 1099MISC.