Get your taxes done using TurboTax

This medical payment is reportable as income, but not as self-employment income requiring a Schedule C.

Report the income as Other Income on Schedule 1 line 8z (this amount will carry-forward to line 8 on IRS Form 1040.  

Enter 1099-Misc, Box 6 (for medical payment).

1. Click on Tax Home.
2. Down the left side of the screen, click Federal.
3. Click on Wages & Income.
4. Scroll down to Less Common Income.  Click down arrow to the right.
5. Click to the right of Miscellaneous income.
6. Click to the right of Other reportable income.
7. At the screen Other Taxable Income enter ‘State Medical Payment’" (or something similar).

Please see example snippet below.