Question

I received a 1099-NEC on gifted money. I’m not self employed. Do I have to pay taxes on this since I received the 1099?

My boss sold the company, wrote me a personal check for $10,000 and said thank you for the years of hard work. I then received a 1099-NEC.

In your case, you are not considered as self-employed. But again, the IRS might want to collect self-employment tax from you.

Follow these steps to report it as other income:

Open or continue your return
Click on Show more next to Other Common Income under the Income & Expenses section
Click on Start/Revisit next to Form 1099-NEC
Follow the prompts to add your 1099-NEC form.
On the screen that says Describe the reason for this 1099-NEC, enter the reason why you received the income in the space provided.

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