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DB31
Level 2

1099 MISC that is NOT income

I receive an insurance stipend from my former employer. I receive a 1099MISC for that stipend every year. TurboTax keeps making that stipend subject to self employment tax. It is not self employment. I followed others suggestions and made sure I checked no to the question 'does it involve work like your main job'. Then I'm asked if I received it in previous years and expect to receive it in 2021.  Well I do.  So checking yes to those prompts means the question 'does it involve intent to earn money' does not come up.  Without that question coming up and my ability to check 'no' to it, Turbo Tax adds it to my self employment tax.  I used to have my taxes done by an accountant and for many years the insurance stipend was not subject to SE Tax. But in 2018 my accountant did my taxes and I paid SE tax on that income (guess I didn't look over what they gave me very carefully). Did the 2017 tax laws change to make my insurance stipend subject to SE Tax, or what can I do to keep Turbo Tax from doing this?  VERY FRUSTRATING!  Thanks for your help!

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1 Reply
ColeenD3
Expert Alumni

1099 MISC that is NOT income

Enter it as other income with the explanation of insurance stipend.

 

To add it as Other Income:

  • I'll choose what I work on
  • Less Common Income select Start (or Update) for 
  • Miscellaneous Income.
  • Other reportable income and you can enter your own description(s) and amount(s).

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