If you received a Form 1099-NEC, Nonemployee Compensation, for a payment received as a result of a one-time event, are you required to report the income on a Schedule C?
It depends.
If the activity was not conducted continuously and regularly to make a profit then it’s considered hobby income and reported as other income on Schedule 1.
However, if you've been thinking about starting a business that will require you to report your business income and expenses on a Schedule C, your 1099-NEC could become your first entry on your first Schedule C.
To learn more, contact MNM Vested, LLC.