High School Junior in non public placement. There was a work experience/job skills class where they went and did a job for a couple months during school.Where do I enter?

[smurphette]

Child received a 1099-misc with an amount under $1000 in box 7. Class was during school hours only; a teacher drove them to class and stayed there during it, and drove them back. TT H&B wants to count child as sole proprietor. Not sure if that's correct, or where to enter information. Business income? Personal Income? Does it even matter? Do we even need to report this amount? 

[Hal_Al · Accepted solution]

The IRS considers anything in box 7 of 1099-MISC to be self employment (sole proprietorship) income. TurboTax (TT) aggressively steers you in that direction. If you try reporting box 7 income as anything else, you chances of hearing from the IRS are very high.

That said, your description of the activity may qualify as an exception. The key to getting TT to treat it as other income is to follow these steps:

 Enter the 1099-Misc

On the next screen Describe what the payment was for

On the next screen select "none of these apply"

On the next screen select "No it didn't involve work like my main job"

On the next screen select "I got it in 2016" ONLY

On the next screen select No, it didn't involve intent to earn money

TT will put the amount on line 21 of form 1040 as other income