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New Member
posted Apr 12, 2025 12:15:06 PM

Why is my Tribal Distribution showing up as business income with a Schedule C instead of Schedule 1?

My Tribal Distribution should be "Other Income" but is showing up as "self-employed income" and trying to create a Schedule C and also trying to force me to creat a nonresident state return. How can I fix it?

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1 Replies
Expert Alumni
Apr 14, 2025 9:13:55 AM

When you enter Form 1099-MISC in TurboTax, take care not to enter it in such a way that it appears to be self-employment income. If you did, you may have seen self-employment tax on your return.  

 

If you enter the information in the 1099-MISC section, when you get to the screen that asks "Does one of these uncommon situations apply?" you can check the box "This was a tribal member gaming payment" even if the payment isn't related to gaming, if that is the closest situation that applies.

 

To report a Tribal Distribution that is not income from working, and would normally appear on a Form 1099-MISC except that the dollar amount is low, you can enter it as Other Reportable Income. 

 

In TurboTax online:

 

  1. Go to Wages and Income
  2. Scroll down to Less Common Income
  3. Go to Miscellaneous Income
  4. Select Other Reportable Income and follow the prompts. You can enter "tribal distribution" as the description.

See here for more information from the IRS.