insguy
Level 2

My client purchased and installed residential solar panels for his home in 2021 and received the tax credit. In 2022 he is now receiving a 1099-NEC for over $15k for supposed unused energy generated from his system that was sent back into the grid. From some articles I read i sounds like this is legitimate taxable income but because it was reported on 1099-NEC I am being forced to report it as Sch C income so he is getting dinged for the self employment taxes also. Can this be correct? Shouldn't it be 'other income' instead? 1099-NEC is forcing me to enter on Sch C or Sch F.

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