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ravenchil
New Member

If I was paid as part of a medical study, is this activity a qualified trade or business under Section 199A?

I participated in a medical study which was supposed to be compensating me for my time, but told me I would not qualify for compensation since I was in the control group. That was found to be in error after the study concluded, so they just gave me everything all at once (it was a 2-year study). Does being a subject in a medical study count as a qualified trade or business under Section 199A?
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1 Reply
SharonD007
Employee Tax Expert

If I was paid as part of a medical study, is this activity a qualified trade or business under Section 199A?

No, participating in a medical study in an infrequent basis isn't considered a trade or business under Section 199A, but the income that you receive from your participation is taxable. The income is reported ‌as "Other Income" instead of self-employment income. Assuming that you received a Form 1099-MISC, refer to the TurboTax Help article Where do I enter a 1099-MISC? for navigation instructions,

 

 Your income will appear on line 8 of Schedule 1 of your Form 1040 as "Other Income".

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