I won merchandise at a store drawing and received a 1099 NEC how do i report that?

The value of the merchandise will be reported on your return a 'prize winning', but you will not enter the Form 1099-NEC.  Instead, keep the form with your tax records in the event that the IRS questions whether it was reported.  Make some notes with the Form 1099-NEC so that you will know what it represents in case you need that information in the future.

Follow these steps to report the income as a prize:

• Go to the Income section of your return, then scroll to Less Common Income at the bottom of the page.
• Click Start or Update beside Prizes, Awards, and Gambling Winnings.  If you are using TurboTax Online, the category may be just Gambling Winnings instead.
• Go through the screens in this section until you see a question about receiving 'other prizes and awards not from gambling'.  This will be on the Let's check for winnings not reported on a W2-G page.
• Answering 'yes' on this page will open a box for you to enter the value of your prize.

The income from the prize will then be reported on Form 1040 Schedule 1 line 8i, under prizes and awards.