How do you eliminate the association of a 1099-Misc form and being self employed? I received a 1099-Misc form reporting other income. I received no money.

Forum|Forum|7 years ago
June 4, 2019
1 reply
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My other income was in the form Airline Pass Travel. TT associating the 1099 Misc form to self employment is generating self-employment issues in both the federal and state filing that do not apply.

TurboTax Premier Windows

Anonymous

If the income is located in box 7 of your 1099-MISC the IRS DOES consider this as self-employment income HOWEVER if the income is listed in box 3 of your 1099-MISC follow the directions below.

The amount shown on Form 1099-MISC Box 3 is usually from one of these:

Prizes
Awards
Taxable damages
Certain benefits of a deceased employee
Medical research participation payments
Legal damages
Indian gaming profits
Other taxable income

You'll usually report this income on Form 1040, Line 21, as Other income. This is taxable income not subject to self-employment tax. When the income reported on Form 1099-MISC Box 3 is from your trade or business, report it with your business income.

The key to getting TurboTax 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 2016" ONLY

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

TurboTax will put the amount on line 21 as other income