BillM223
Expert Alumni

Business & farm

@Confused Inupiaq

 

Two updates:

 

1. The IRS has created the form 1099-NEC, which should be used to report non-employee compensation (like goes to Schedule C). In theory, this means that income reported on a 1099-MISC should not trigger a Schedule C (although it may create a Schedule E if it's rents or royalties).

 

2. If you do a Search (upper right) for 1099-misc and click on the jump-to link (Mac users must find 1099-misc in the Topics List). This will take you to the 1099-MISC entry interview (NOT the Schedule C).

 

Enter your data here, and if your income is in box 3, you are OK.

 

However, note that you may have to answer some of the following questions to avoid being considered a business anyway:

 

A. "Did the [source of 1099-MISC] involve work that's like [your name] main job?" say NO, since this is tribal distribution, not work.

 

B. "Did the [source of 1099-MISC] involve an intent to earn money?" - again, say NO since you are getting this for being a tribal member and not working for it (right?).

 

And, yes, as noted before, this will appear on line 8 on Schedule 1 (1040) as Other Income.

 

Now you should be able to e-file.

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