This really doesn't sound like self-employment-type income, but because it's reported in Box 6 of Form 1099-MISC, the TurboTax program (and, presumably, the IRS) expect that it is self-employment income. I'd suggest that you contact the issuer to have the income recategorized as Other income in Box 3. Entering income in Box 3 doesn't necessarily trigger self-employment tax.
According to Box 6, Medical and Health Care Payments in the Instructions for Forms 1099-MISC and 1099-NEC (Rev. January 2024), which is the tax guide that Form 1099-MISC issuers are supposed to follow:
Enter payments of $600 or more made in the course of your trade or business to each physician or other supplier or provider of medical or health care services. Include payments made by medical and health care insurers under health, accident, and sickness insurance programs…. Payments to persons providing health care services often include charges for injections, drugs, dentures, and similar items. In these cases, the entire payment is subject to information reporting. You are not required to report payments to pharmacies for prescription drugs.
That really doesn't seem to describe your activity.
That being said… here's how Form 1099-MISC Box 3 information is entered so it doesn't trigger self-employment tax:
- Open TurboTax Online
- Select Tax Home in the left pane
- Select the dropdown to the right of Wages & Income
- Select Pick up where you left off, Review/Edit or the edit pencil
- On the Great! We've got your income info page, select the dropdown to the right of Other Common Income -- Tax refunds, 1099-G, 1099-NEC, 1099-MISC, 1099-K
- Select Start to the right of Form 1099-MISC
- Select Yes on the Did you get a 1099-MISC? page
- Enter the information from your 1099-MISC on the Let's enter the income from your 1099-MISC page, then select Continue
- On the Describe the reason for this 1099-MISC screen, enter [description], then select Continue
- On the Do one of these uncommon situations apply? screen, select the bullet next to None of these apply, then select Continue
- On the Did the [description] involve work that's like [your] main job? page, select the bullet next to No, it didn't involve work like [your] main job, then select Continue
- On the How often did [you] get income for [description]? page, answer appropriately, then select Continue
- On the Did the [description] involve an intent to earn money? page, select the bullet next to No, it didn't involve an intent to earn money. This indicates to the program that this wasn't self-employment income, so self-employment tax won't be triggered. Select Continue
- On the Your 1099-MISC summary page, select Done, unless you have more Forms 1099-MISC to enter
If the TurboTax Online navigation described above doesn't look like what you're experiencing, see the TurboTax Help article Why does the TurboTax navigation menu look different for me?.
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