Why am I paying self employment tax on $1200 I receive as a firefighter retirement health insurance stipend when I was never subject to FICA while employed?

[ReginaM · Accepted solution]

I am assuming that you received and entered a 1099-Misc into TurboTax.  You will need to correct your entries in TurboTax to reflect that this income is not subject to self employment taxes:

1. While in your Tax Home,

2. Select Search from the top right side of your screen,

3. Enter 1099-Misc,

4. Select Jump to 1099-Misc,

5. Follow the On-Screen Prompts,

6. When you get the question, Did the involve work that's like your main job?  Answer no.

7.  When you get to the question Did the involve an intent to earn money? Answer No.

This should take care of FICA taxes you were being charged!