If two of my dependent children were paid to participate in a Covid-vaccination study, should I report their nonemployee compensation from a 2021 form 1099-NEC?
If two of my dependent children were paid to participate in a Covid-vaccination study, should I report their nonemployee compensation from a 2021 form 1099-NEC?
If you are asking if you need to report the income, then yes. However, this is not self-employment income.
Enter it in such a way that you identify that it was incorrectly reported on 1099-NEC and that you avoid paying SE tax.
Down the left side of the screen, click Federal.
In the center of the screen, click Income & expenses.
On the screen Your income and expenses, scroll all the way down to the last section, Less Common Income.
Click the Start or Update button for the last topic, Miscellaneous Income, 1099-A, 1099-C.
On the next screen, Let's Work on Any Miscellaneous Income, scroll down and click the Start or Update button for the last topic, Other reportable income.
The next screen asks, Did you receive any other taxable income. Click Yes.
On the next screen, Other Taxable Income, enter a description (Covid-vaccination study incorrectly reported on Form 1099-NEC), and the amount. Click Continue.
On the next screen click Done.
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