I do not own a business. I am 82 years old and live in a retirement home. Why is the program saying I do own a business that earned $250.

[bmurry21]

I did receive a 1099-MISC for $250 from my former employer.  it is an employee benefit they provide to help with Long term care costs.  not a business.

[DawnC0 · Accepted solution]

Here is how to enter your 1099-Misc without setting up a business.  If you are using TurboTax Online, sign into your TurboTax account and click on 'Take Me to My Return'.

• Federal (left side menu) >>
• Wages & Income (top menu) >>
• I'll choose what I work on OR Show all Income types >>
• Other Common Income >>
• Form 1099-MISC >>  
• Choose YES, I received a 1099-MISC >>
• Enter the information from your 1099 - Continue >>
• Enter 'Long-term health care reimbursements' for the reason description >>
• Choose 'None of these Apply' as an answer to uncommon situations >>
• Choose NO it did not involve work related to your main work >>
• Indicate you received it in 2017 only >>
• Choose NO it didn't involve an attempt to make money >>
• Choose NO - I have no more 1099s to enter 

The income will be reported on line 21 as ''other income'' and you will not be subject to Self-Employment tax or be required to go through the business set-up process. 

[bosso3]

Thank you TurboTaxDawnC for the clarification and step-by-step instructions.

[DawnC0]

No problem, you are welcome!

[bosso3]

I am not 100% certain of this, but this is my understanding:
If you received a 1099-MISC from your "former" employer for money they paid you, you must report that income.   You may not consider yourself in business, but the IRS does, and it is money you received.
For details, refer to https://www.irs.gov/faqs/interest-dividends-other-types-of-income/1099-misc-independent-contractors-...

Follow the TurboTax instructions for your "business".

If you are living in a retirement home that provides medically necessary assistance, you may be able to deduct the portion of your monthly payment to the home that covers those medically necessary costs.  You would need to get a statement from the retirement home regarding how much of your "rent" is for housing, food, and medically necessary assistance.   Medical deductions show on the Itemized Deductions Schedule A, lines 1 - 4.

Also, even though you did not ask, if you are a veteran, certain veterans may receive a  benefit, called "Aid and Attendance", to help pay for such assistance.  Contact your local veterans office for details.  Also refer to
https://www.benefits.va.gov/pension/aid_attendance_housebound.asp