Hal_Al
Level 15

Retirement tax questions

Box 3 is still taxable, but is only subject to income tax.  You will not pay any self employment/FICA tax.

 

The IRS considers anything in box 7 of 1099-MISC to be self employment income. TurboTax (TT) aggressively steers you in that direction, even if the amount is in box 3. 

 

That said, the key to getting TT to treat it as other income is to follow these steps:

 

Enter the 1099-Misc

On the next screen Describe what the payment was for

On the next screen select "none of these apply"

On the next screen select "No it didn't involve work like my main job"

On the next screen select "I got it in 2019" ONLY

On the next screen select No, it didn't involve intent to earn money

TT will put the amount on line 8 of Schedule 1 as other income

 

If you are  dependent on someone else's return, reply back for further instructions.