I discovered a way to easily solve the problem. The online cloud based version of TurboTax is not as flexible at the desktop version. I was tearing my hair out! If you've started with the online version you can request TurboTax to give you access to the downloadable desktop software. I recommend doing this if you have a complex return. Using the desktop software you can access forms easily. This is not possible using the cloud version of TurboTax. After you've entered the 1099-MISC, you can view the 1099-MISC Wks. Simply click "Other Income" in the information for Box 3, which puts an X in the Other Income box. Now check Schedule 1 and you'll see the income listed on line 8z Other income (Other income from box 3 of 1099-Misc). No SE tax should be generated. Problem solved!
