The state stimulus payment is not considered self-employment. It can be entered as other income without having to pay self-employed taxes.
- Sign in to your TurboTax account.
- Click on Federal Taxes tab.
- Choose Wages and Income.
- Scroll down to Other Common Income
- Select 1099 -NEC
- Enter the 1099 NEC information'
- Then it asks for a description of the income. Give it the proper description.
- When you reach a page that says Does one of these uncommon situations apply?
- Select This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby (this is not common).
- This will then be taxed as common income and not business income.
Even though the payment was related to your occupation, this is not considered self-employment.
Please see the discussion about this issue by Experts and others who have received the same 1099-NEC.
@gpike13
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