I spoke to a Turbotax representative/expert who logged into my computer. She pointed out I had $8,300 of new 1099-MISC (I don't have a job, not making any W-2's) for that year that I hadn't had the previous 5 years and none the next year after that. The 'other income' on box 3 of my 1099-MISC was a refund/payout of insurance trust rewards based on 20 years of my paying professional malpractice insurance. Turbotax put it in the category of self-employment income and apparently calculated self-employment taxes. Also I had to pay back some $1,700 of Obamacare premiums because of this 'income'. Still with $8,300 + $1,700 and my previous years of tax arounf $775, I still had to shell out a total of $11,700 in taxes that year.
It's like I paid more than the whole of extra 'income' I had that year. It doesn't sound logical to me. But I don't know what to do.
She(TT expert) suggested that I contact the IRS to see if that 'income' could be classified as something other than self-employment income. It is basically a partial refund of the premiums I paid over the years, although I paid them pretax as part of the company I worked for.
I don't think that is likely to happen.
