☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Feb 11, 2025 7:08:25 AM

how to avoid schedule C

I have legal services through the UAW Legal services plan trust.  I get a 1099 Misc. with a small amount that needs to be claimed.  The trust says no schedule C is needed but turbo tax still fills it out and it always tells me it needs to be corrected.  How do I claim that small amount and avoid the schedule C?

0 1 767
1 Best answer
Expert Alumni
Feb 11, 2025 7:10:12 AM

If you receive a form 1099-MISC for a legal service plan, then you are not considered as self-employed and do not need to file a Schedule C.

 

In TurboTax Online, enter your form 1099-MISC by following these steps:

  1. Open your tax return
  2. Click Federal in the left-hand column then on Wages & Income
  3. Navigate to the list of income categories
  4. Locate the section Other Common Income and click on the down arrow on the right
  5. Click Start next to Form 1099-MISC
  6. Follow the interview until you arrive at the page titled Did this involve an intent to earn money?. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax.

 

In TurboTax, there is a work-around. Although you may receive this income every year, say that you only receive the 1099-MISC in 2024, not in previous years and not in 2025, you will then have the screen where you can say that it did not involve an intent to earn money.

1 Replies
Expert Alumni
Feb 11, 2025 7:10:12 AM

If you receive a form 1099-MISC for a legal service plan, then you are not considered as self-employed and do not need to file a Schedule C.

 

In TurboTax Online, enter your form 1099-MISC by following these steps:

  1. Open your tax return
  2. Click Federal in the left-hand column then on Wages & Income
  3. Navigate to the list of income categories
  4. Locate the section Other Common Income and click on the down arrow on the right
  5. Click Start next to Form 1099-MISC
  6. Follow the interview until you arrive at the page titled Did this involve an intent to earn money?. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax.

 

In TurboTax, there is a work-around. Although you may receive this income every year, say that you only receive the 1099-MISC in 2024, not in previous years and not in 2025, you will then have the screen where you can say that it did not involve an intent to earn money.