First ... if you want to put it on the Sch C and pay SE taxes on the income then the IRS will not mind it. Otherwise it is a Sch 1 line 8 entry.
Follow these directions to post 1099-Misc, box 3 income not subject to self-employment taxes.
- Down the left side of the screen, click Federal.
- In the center of the screen, click Income & expenses.
- On the screen Your income and expenses, scroll all the way down to the last section, Less Common Income.
- Click the Start or Update button for the last topic, Miscellaneous Income, 1099-A, 1099-C.
- On the next screen, Let's Work on Any Miscellaneous Income, scroll down and click the Start or Update button for the last topic, Other reportable income.
- The next screen asks, Did you receive any other taxable income. Click Yes.
- On the next screen, Other Taxable Income, enter a description and the amount. Click Continue.
- On the next screen click Done.
The income will be reported on Schedule 1 line 8 with the description that you entered.
