Thank you for this detailed explanation! So even though the payment wasn't for actual work performed, but more like a "holding fee" for the delayed start date, it still counts as nonemployee compensation? And I just report it as regular income on my Schedule C?

Yes, exactly. The IRS considers this type of payment to be nonemployee compensation because it's directly related to your business relationship with the company, even if you didn't perform specific services during that time. You'll report it on Schedule C as self-employment income, which means you'll also need to pay self-employment tax (Social Security and Medicare) on it. The entire $6,500 is reportable as gross income, and you may be able to deduct any legitimate business expenses that were related to this income.

This happened to me too! My company's accounting department kept saying they'd send a 1099-MISC but sent the NEC. When I called them they explained they just use "1099-MISC" as a generic term for all 1099 forms out of habit.

The QBI deduction is awesome but it gets complicated fast. Doesn't it phase out at certain income levels? And aren't there restrictions for certain types of service businesses?

This is super helpful! Do you think there are specific industry sectors or company types that tend to value tax expertise better than others? Are there particular red flags you look for when considering a new position?

Financial services (banking, insurance, investment firms) and large multinational tech companies typically pay the best for tax roles. They understand that good tax planning directly impacts their bottom line. Red flags include job descriptions requiring expertise in too many different tax areas (domestic, international, state/local, etc.) without appropriate compensation. Also beware of positions where you're the only tax person at the company - you'll end up doing everything from payroll tax to international structuring without support. Watch out for companies that treat tax as purely a compliance function rather than a strategic department. And always ask about technology investment - nothing worse than being stuck with Excel spreadsheets for complex tax work because leadership won't invest in proper tools.

This! I switched to a lower-paying role because my new company offers true flexibility (not just "flexible if you get your work done" which always means 60+ hour weeks anyway). Having actual control over my schedule and being able to work remotely most days has been life-changing for my mental health.

But isn't getting a big refund a good way to save? I know I'd probably just spend that extra money in each paycheck if I adjusted my withholding.

I totally understand that concern - many people do use tax refunds as a forced savings method. If you struggle with saving, you might want to try setting up automatic transfers on payday so the money goes directly to savings before you can spend it. The disadvantage of using tax refunds as savings is that you can't access YOUR money during emergencies throughout the year, which is exactly when many people end up taking out predatory refund advance loans or other high-interest debt. Having savings you control gives you more financial flexibility without paying those high fees.

I used one of those "no fee" advance services last year at a major tax chain. While technically there wasn't a specific "fee" for the advance itself, they charged me $395 for tax preparation for a very simple return that should have cost about $150. When I questioned it, they said the higher prep fee was "standard" but I'm pretty sure it was inflated to cover the "free" advance. Plus, they gave me the advance on their prepaid debit card which had all kinds of usage fees. I ended up paying about $30 in ATM and transaction fees before I used up the advance amount.

Did the CPA help you recover the excess refunds that should have been returned to you? I'm in a similar situation and wondering if paying for professional help is worth it.

Yes, that was the best part! The CPA was able to prove that the state had received about $1300 more than I actually owed once all the calculations were corrected. It took some back and forth, but the state eventually issued me a refund for the excess amount they had received through the offset program. As for whether it's worth hiring someone - in my case, absolutely. I had been trying to sort this out on my own for almost two years with no progress. The CPA had contacts and knew exactly what forms to file and what to say to get action. The $600 I paid saved me countless hours of frustration and helped me recover $1300 I wouldn't have otherwise received, plus got my future refunds flowing again. Sometimes you need someone who speaks their language.

I tried this number and it works! It's an automated system that tells you if you have offsets, the type of offset (state tax, child support, student loans, etc.), and the amount. It doesn't give you super detailed info, but at least confirms if your refunds are being redirected.

Glad it helped! Yeah, it's not a full solution but at least it gives you confirmation about whether offsets are happening. Sometimes just knowing for sure is half the battle, especially when you can't get anyone on the phone to explain things.