If you meet the requirements, the IRS will not consider this self-employment income. I assume this is for your 2016 taxes? Here's where to report it in TurboTax 2016 so that it's not treated by the program as self-employment income. The detailed instructions below are just a guide to get you started on the write path. In your case, you will NOT follow them to the letter. Just make SURE you answer the questions honestly. If you don't, and you get another 1099-MISC for 2017 for the same type of work, you WILL be audited about 24-36 months down the road. Count on it.
Reporting 1099-MISC (box 3 or box 7)
that is not self-employment income
Under the Wages & Income tab (or Personal Income tab)
scroll down to Other Common Income and elect to start/update Income from form
1099-MISC. Then click YES to indicate you have a 1099-MISC.
Enter the 1099-MISC exactly as printed, and then
Continue.
Enter the reason you got this money – be it scholarship,
bonus, streaking butt naked across the 50 yard line of the super bowl,
whatever. Then continue.
Select None of these apply, then Continue.
Select No, it didn’t involve work….. and Continue.
Select ONLY the tax year for which this specific
1099-MISC was issued. Do not select the year that you received the 1099. Select
the year for which the 1099-MISC was issued. Select no other year. Then Continue.
Select No, it didn’t involve an intent to earn money,
then Continue.
Select NO, then Continue.
Click the DONE button, and that does it.
