Self employed

Prize money should not be reported under Self-Employment Income and Expenses. You will not be able to view the Schedule C under preview my 1040. Follow the steps below to delete the 1099-NECs that you entered under Self-Employment Income and Expenses and then add the Income as prize money.

• Go to the Wages & Income section of the tax return
• Scroll down to Self-employment income and expenses and select Review
• You should be at the screen Your 2022 self-employed work summary
  • Select the trash can by Review to delete the Self-employment information
  • Select Done
• You will be back at the Wages & Income section
• Scroll all the way down to the Less Common Income category (it’s at the bottom)
• Select Start or Revisit beside Miscellaneous Income, 1099-A, 1099-C
• Scroll down and select Start or Revisit beside Other Reportable Income at the bottom of the section
• On the screen Other Taxable Income enter Prize Money as the description and the amount.

Your daughter’s tax return will not be subject to self-employment taxes only income tax. Just remember to check the box that says I can be claimed on someone else’s tax return if she is your dependent.

For additional information on prize money, please review the TurboTax article Everything You Need to Know About Filing Taxes on Winnings.