You'll have to pay federal tax on it, but not self-employment tax. Here's how to do that in Turbo Tax:
1. Click Federal
Taxes across the top.
2. Click Wages
& Income across the top.
3. Click I’ll
choose what I work on.
4. Scroll down to 1099-MISC and Other Common Income.
5. Click Start
or Update by Income from Form 1099-MISC.
Enter your 1099-MISC on
Let's get the info from your 1099-MISC. Enter the reason for the 1099-MISC on the next page.
Check the box by None of these apply on the Does one of these uncommon situations apply?
Check No, it didn't involve work like...
Check you got it in 2018 on the next page.
Check No, it didn't involve an intent to make money on the next page.
Answer No to Do either of you have another 1099-MISC?
Click Done.
That will make it federally taxable, but not subject to SE tax.
