I don't have a Principal Business Code. What do I enter?

Participation in a medical study is not self-employment as there is no intent to make money and does not require Schedule C.

 

If you receive such 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.

I have a 1099-NEC and it's asking for a principal code in the review section. I don't have one, what do I enter?

Here is the list of Principal Business Codes. Basically, it is asking what industry you were working in the reason you received the 1099-NEC.  For example, if you were a subcontracting auto tech then you would enter the code 811110 Automotive mechanical & electrical repair & maintenance.  

 

This is just for statistical purposes.  It does not affect your return in any way. 

I got this same error but I do not see the page " did this involve an intent to earn money". We received a 1099-Misc from a lawsuit settlement. 

See the following TurboTax help article for guidance to enter your income from a lawsuit settlement:

 

Where do I enter an award from a taxable legal settlement?

 

@jkleeb