Retirement tax questions

Income for participating in a clinical trial or medical study is taxable.  If the activity is infrequent, the income would not be self-employment income.  The IRS discussed that position in the Internal Revenue Service's Private Letter Ruling 9106004 regarding a participant in a medical study for asthma.

What that means is that it would be subject to income taxes, but not subject to self-employment tax.  It also would not qualify the participant for the earned income tax credit or any other tax benefit that is dependent on earned income such as an IRA deduction.

If you did receive a Form 1099-MISC , it is entered under the Wages and Income tab

• Check for More Income and See All Income
• Click on Show More then  Start beside Other Common Income by the icon of the green money bag
• Click onStart by Form 1099-MISC.
•  Enter Form 1099-MISC information.  Make sure you enter the amount in Block 3
•  under source of other income, select "other income"
•  "none of the above, show me other options"
• [You] were in a research study and this was payment,
• you did not perform a service to earn the money.

 If you did not receive a Form 1099-MISC, you will still enter it under Wages and Income but

• Scroll down to Less Common Income, by the gold dollar sign icon
• Click on See More and Start beside Miscellaneous Income
• Scroll down and click on Other Reportable Income
• Enter the amount and a description there.