Hello, I received free stocks from Webull for making some referrals. They sent me a form 1099 Composite and reported $1,203.44 on a 1099-MISC under box 3 - Other Income. I did not sell these stocks yet either. My problem is that TurboTax is treating these free stocks as business income and making me pay self-employment taxes on them. How should I report these free promotional stocks received and not have to pay self-employment taxes on them? And when I do sell them, how should the be reported?
I also have a similar issue with my Robinhood, except instead of stocks, I received a promotional $200 bonus for depositing some money into my account. They also sent me a 1099-MISC for the bonus that is being treated as business income that is subject to self-employment taxes.
