When you enter a Form 1099-MISC, read and answer the interview questions carefully so that TurboTax doesn't misclassify it. Revisit that section and answer the questions again.
You can enter the Form 1099-MISC and identify that it was not income from working so that it doesn't get misclassified as self-employment income:
- Select Income from Form 1099-MISC under Wages and Income.
- Enter the payer information and dollar amount
- Enter a description for the payment
- When asked about Uncommon Reasons, select that none apply or select one that adequately explains the reason
- When asked about the frequency of payment, select received in 2023
- When asked "Did (description) involve an intent to earn money?" answer No (that is, it is not earned income and therefore not subject to self-employment tax)
Form 1099-MISC is used by various payers to report certain types of miscellaneous compensation, such as rents, prizes, awards, healthcare payments, and payments to an attorney to the IRS and to the recipients of those payments.
@Kaymac
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