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March 7, 2022
Question

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?

  • March 7, 2022
  • 1 reply
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1 reply

ColeenD3
March 7, 2022

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.