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If My wife has a retirement benefit from her last employer, it shows up as self employment. not true, it is compensation for health care coverage.?

can this be posted somewhere else, itis not self employment?
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1 Best answer

Accepted Solutions
ToddL
New Member

If My wife has a retirement benefit from her last employer, it shows up as self employment. not true, it is compensation for health care coverage.?

Because it's being reported to the IRS, you will have to report the amount in box 3 of your 1099-MISC as income. It will appear on your Form 1040 as Other Income on Line 21 (not as self-employment income if you answer the interview questions correctly). 

To report the income:

  • Enter the 1099-Misc in the "Other Common Income" section (enter "1099misc" in the Search Box and Select "Jump to 1099misc")
  • Enter "Insurance reimbursement" as the description. Indicate that it does not involve work like your main job, that it did not involve an intent to make money, and is not a payment your received in the past or expect in the future. 
  • The income will be reported on line 21 of your return.

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3 Replies
ToddL
New Member

If My wife has a retirement benefit from her last employer, it shows up as self employment. not true, it is compensation for health care coverage.?

Did she receive a Form 1099-MISC for this payment? Which box listed the payment?

If My wife has a retirement benefit from her last employer, it shows up as self employment. not true, it is compensation for health care coverage.?

Yes, box #3
ToddL
New Member

If My wife has a retirement benefit from her last employer, it shows up as self employment. not true, it is compensation for health care coverage.?

Because it's being reported to the IRS, you will have to report the amount in box 3 of your 1099-MISC as income. It will appear on your Form 1040 as Other Income on Line 21 (not as self-employment income if you answer the interview questions correctly). 

To report the income:

  • Enter the 1099-Misc in the "Other Common Income" section (enter "1099misc" in the Search Box and Select "Jump to 1099misc")
  • Enter "Insurance reimbursement" as the description. Indicate that it does not involve work like your main job, that it did not involve an intent to make money, and is not a payment your received in the past or expect in the future. 
  • The income will be reported on line 21 of your return.

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