Medical Supplement

[JDEthan]

My former employer (I am retired) pays me money to cover part of my supplemental medicare plan. They sent me a 1099-MISC listing it as other income. When I enter the information it wants me to fill out a schedule C for income as a business. Do I need to claim this and if so where? 

[MinhT1]

If you receive a form 1099-MISC for a payment towards your supplemental medicare plan, then you are not considered as self-employed and do not need to file a Schedule C.

In TurboTax, enter your form 1099-MISC and follow the interview until you arrive at the page titled Did this involve an intent to earn money?. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax.

In TurboTax, there is a work-around. Although you may receive this income every year, say that you only receive the 1099-MISC only in 2019, not in previous years and not in 2020, you will then have the screen where you can say that it did not involve an intent to earn money.

[JDEthan]

I deleted my original 1099 entry, including any supplemental schedules. I then reentered the 1099 as I went thru the interview I did not come to a page or question 'Did this involve an intent to earn money?'. Any suggestions? Thanks ,Jay

[VictoriaD75]

Follow these steps if you have a 1099-MISC:

• Under the Federal menu, click on Wages & Income
• Expand the menu for Other Common Income
• Click Start/Revisit next to Form 1099-MISC
• Enter the information as shown on your document

You should see the amount reported on line 8 of Schedule 1. This will not create a Schedule C or charge self-employment tax.

[JDEthan]

When I followed these directions it produced a schedule C for a business. Should I enter this 1099-Misc under Less Common Income Miscellaneous Income ? I'm using Turbo Tax Deluxe 2021.

Thanks, Jay

[PatriciaV]

@JDEthan - Yes, delete your previous 1099-MISC and enter under Less Common >> Miscellaneous Income. This should not be reported as business income.

[JDEthan]

When in Miscellaneous Income what heading should I enter the 1099 Misc so I don't generate a schedule C?

Thanks,Jay

[LenaH]

To avoid a Schedule C being populated, please follow the instructions below:

1. Open or continue your return, if you're not already in it.
2. Search for 1099-misc and select the Jump-to link.
3. Edit your 1099-MISC.
4. Continue past the amounts already entered.
5. Describe the reason for this 1099-MISC.
6. Answer None of these apply on the screen Does one of these uncommon situations apply?
7. Answer No, it didn't involve work like my main job for the question Did this involve work that's like my main job?
8. Answer You got it in 2021 for the question How often did you get this income?
9. Answer No, it didn't involve an intent to earn money for the question Did this involve an intent to earn money?
10. Answer the remaining on-screen questions.
11. Your 1099-MISC will flow to Other Income.

Next, please make sure to delete any Schedule C or associated self-employment forms in your return.

1. Search for Schedule C with the magnifying glass tool on the top of the page.
2. Select the Jump to Schedule C link in the search results.
3. Select No to the question Did you have any self-employment income or expenses? 
4. Click on Tools.
5. Click on Delete a Form. 
6. Scroll down to your forms and look for forms you need to remove and click Delete. 

@JDEthan