1099-NEC not for business

Forum|Forum|3 months ago
March 7, 2026
2 replies
16 views

I have several clients that receive 1099-NEC's for a non-business purpose. For example blood or plasma donations. That is not a self-employment event. How do I enter the information without having to create a Schedule C yet have the income flow to the 1040 without SE?

thanks, K.

ProConnect Tax

Best answer by Intuit_Kallana

Hi @kgardner58, you would enter the 1099-NEC on the screen but do not select a form to attach it to you. Then manually go to Income --> SS Benefits, Alimony, Misc. Income --> Other income field and enter it for either taxpayer and/or spouse. You will see two of these fields. The top one is for Other Income subject to self-employment tax, do not use that one. You want the one right underneath that one. If you need further assistance, please contact ProConnect Support .

Intuit_KallanaAnswer

Level 7

Hi @kgardner58, you would enter the 1099-NEC on the screen but do not select a form to attach it to you. Then manually go to Income --> SS Benefits, Alimony, Misc. Income --> Other income field and enter it for either taxpayer and/or spouse. You will see two of these fields. The top one is for Other Income subject to self-employment tax, do not use that one. You want the one right underneath that one. If you need further assistance, please contact ProConnect Support .

sjrcpa

Level 15

Why not just enter it as Other Income and skip the 1099-NEC input part?

The more I know the more I don’t know.

K

kgardner58Author

Level 3

Because it is not Self Employment income. I see that on the SS page, there is a line for other, non SE but my question was whether I needed to enter the NEC form separately as well?

thanks for your time - K.

BobKamman

Level 15

Now that you know how to enter it on the return, do you want to know how to avoid IRS sending your client a proposed adjustment for SE tax?

There are those who will tell you to play the "Trick the IRS Computer" game by putting it on Schedule C and then subtracting it out as some sort of adjustment. That can lead to other problems, like IRS coding the return's audit probability based on owning a business.

Has the client gone back to the payer and asked for a corrected 1099? If that doesn't work, try sending a letter to the CEO notifying them that they will be billed for any professional fees incurred in responding to an IRS notice.

If it's $2,000, IRS isn't going to start a case for $300. If it's $5,000, they might. I attach an explanation to the return, not expecting anyone to read it now, but so a copy can be sent to IRS when the CP-2000 arrives. Impress on the client the importance of a quick response (when it happens a year or so from now).

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