1099 misc box 7 Nonemployee compensation checked. It transferred to Schedule C. It was for UAW legal services; he has no business. Is Sch.C correct form to use?

[gardener5]

Attached to 1099-Misc. a letter states that this is misc. income.This is a benefit for UAW_FCA_FORD-General Motors active workers & retirees.  

[MarilynG · Accepted solution]

Unfortunately, when the payor puts the amount in Box 7, it is considered self-employment income (they should use Box 3).

There is a workaround, though.  Type '1099misc' in the search window, and 'Jump to 1099-Misc'.

At the 1099-Misc Summary, EDIT the entry you want to change.

For type of income, choose 'none of the above'.

Choose NO for 'this is not work like my main job' (screenshot).

Choose NO for 'did not intend to earn money' (screenshot).

This will put the amount in Other Income, and will not appear as Self-Employment income on Schedule C.