What is the income for?
A pension is ordinary income, but reported on a 1099-R.
A 1099-MISC box 3 is not subject to SE tax, only box 7 income is.
@dmertz have you come across a pension on a 1099-MISC before? - Does not seem right.
Actually I don;t know how to enter it - I will ask others.
Here's how to enter a 1099-MISC with income in box 3 in TurboTax so that it is reported as "other income" on Schedule 1 line 21.
- Click Federal Taxes.
- Click Wages & Income.
- Click "I'll choose what I work on" or "Jump to a full list."
- On the screen "Your 2018 Income Summary," scroll down to the section "1099-MISC and Other Common Income." Click the Start button for "Income from Form 1099-MISC."
- The next screen asks "Did you get a 1099-MISC?" Click Yes.
- On the next screen enter the information from the 1099-MISC form, then click Continue.
TurboTax will now ask a series of questions about the 1099-MISC income. Answer as follows, even if some of the answers aren't true.
- "Describe the reason for this 1099-MISC." - It doesn't matter what you enter. Enter a short description such as "Pension." Click Continue. You will see this description used in some of the subsequent questions, but it will not appear on your tax return.
- "Does one of these uncommon situations apply?" - Select the last choice, "None of these apply," and click Continue.
- "Did the Pension involve work that's like your main job?" - Select No and click Continue.
- "How often did you get income for Pension?" - "I got it in 2018" will already be checked. Don't check any of the other boxes. Just click Continue.
- "Did the Pension involve an intent to earn money?" - Select No and click Continue.
This will report the income as "other income" on Form 1040 line 21 with the description "Other Income from box 3 of 1099-Misc." It will not be subject to self-employment tax.