how to fix error Schedule C

[lllllllllllll]

I get a 1099-MISC for free legal services my employer gives us (I'm retired) that amounts to under $25. Legal services says we don't need to file a Sched C because it is a "fringe benefit" and the IRS classifies it this way since 1992. Here is what they said.

IRS Box 3 instructions state that miscellaneous income goes on the “Other income” line of Schedule 1 for those using Form 1040 or Form 1040NR.
The instructions for Form 1099 NEC Box 1 do not apply.
You don’t have to file a Schedule C with your tax return because the 1099 reported amount is not self-employment income.
When I do turbo tax it ask me all of the questions as if it is self employment and makes me do a schedule C. If I skip those steps next year, will Turbo Tax still let me e-file or will it keeps asking me to correct my taxes before I file? I filled them out this year but I don't know if I filled them out correctly since it's not "income" per say. I hate having to pay the $30 extra to claim $24.

[DaveF1006]

Let's report it as other income to completely keep it from that dreaded Schedule C.  Here's how to report.

1. Log into your account
2. Select Wages and income or income
3. Less Common income
4. Miscellaneous Income, 1099-A, 1099>start
5. Scroll to the bottom of the page to Other Reportable Income
6. Other taxable income, answer yes
7. Then give a brief description of the income and the amount listed..

Here you can call this 1099 MISC income received for Legal Services and then record the amount. If you reported this as a 1099 MISC, delete it from that section before reporting this as other income.

[lllllllllllll]

thank you but that also does not work. I deleted the info from 1099 MISC and followed the instructions you provided (which I had also done previously and deleted)...but it still wants info to be included on Schedule C 

[DawnC]

Delete the Schedule C and the bad 1099.   

How to delete forms in TurboTax Online

How to delete forms in TurboTax Desktop

Then re-enter the 1099-misc as follows.

Under Other Common Income, select Start or Revisit next to Form 1099-MISC.   Enter your 1099-MISC info on the Let's get the info from your 1099-MISC screen and click Continue.  

1. On the Describe the reason for this 1099-MISC screen, enter a description of the income.  
2. Click Continue.
3. Select None of these apply on the Does one of these uncommon situations apply? screen.
4. Select No, it didn’t involve work like my main job on the Did the involve work that's like your main job? screen.
5. Select I got it only in 2024 on the How often did you get income for? screen.
6. Select No, it didn’t involve intent to earn money on the Did the work involve an intent to earn money? screen.
7. Select No on the Do you have another 1099-MISC? screen.

Answering differently to any of these questions will imply self-employment and generate Schedule C.    Don't forget to delete the Sched C and the erroneous 1099.