ToddL99
Expert Alumni

Get your taxes done using TurboTax

If the 1099-MISC reports income that is not related to your main job or self-employment, enter the information as follows in the 1099-MISC interview:  

  • Enter the 1099-Misc in the Other Common Income  section (Enter "1099 misc" in the Search Box and Select "Jump to 1099 misc form")  

  • For "Description", enter "Tax settlement"  

  • Also check that it does  not  involve work like your main job, that it  did  not  involve an intent to make money, and is not a recurring payment (received in the past or expected in the future) (these questions only apply to active, not passive, income).  

  • The income will be reported on line 8 of Form 1040 of your return (Other income from Schedule 1, Line 9).  

Answering the questions in this way will not generate a Schedule C or an employment tax liability for the payment.