1099-misc triggering self-employment tax for unearned income

finnmarble · ‎February 25, 2022

My late husband received payments from a non-qualified pension plan. It was reported on a W-2. As his widow, I now receive half of that amount. The income for me is on a 1099-misc. Turbotax is filing a Schedule C and taking self-emplyment tax. I don't think this is right!

ErnieS0 · ‎February 25, 2022

It is not right. Go back and edit your 1099-MISC.

Select None of these apply on Does one of these uncommon situations apply?
Select No on Did the Pension involve work that's like your main job?
Select I got it in 2021 on How often did you get income for Pension?
Select No on Did the Pension involve an intent to earn money?

These steps will add your pension payment to income but not to self-employment tax.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

ErnieS0 · ‎February 25, 2022

It is not right. Go back and edit your 1099-MISC.

Select None of these apply on Does one of these uncommon situations apply?
Select No on Did the Pension involve work that's like your main job?
Select I got it in 2021 on How often did you get income for Pension?
Select No on Did the Pension involve an intent to earn money?

These steps will add your pension payment to income but not to self-employment tax.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

finnmarble · ‎February 26, 2022

Thank you. It worked.

Expert does your taxes

Do it yourself

Resources

Support

1099-misc triggering self-employment tax for unearned income