topic 1099-MISC but not self employed in Get your taxes done using TurboTax

1099-MISC but not self employed

Stonks — Fri, 07 Feb 2025 03:52:25 GMT

Hi,

I received a 1099-MISC which is income from auto-callable contingent income securities. The form is given to me by the bank that I used to buy those investments.

When I enter the 1099-MISC in TurboTax, it triggers a "self-employed" form which I completed. I'm wondering if this is correct since I'm not really self employed. I put my business is "Structured Investments Income" and completed through the question but it seems that TurboTax should give me the option to just say that I'm not self-employed and it was just some other income.

Does it make any difference? Is it possible to get the form loaded without having to add a "self-employed" form?

Thanks!,

Diego

Re: 1099-MISC but not self employed

Stonks — Fri, 07 Feb 2025 04:12:14 GMT

I think the trick is to say the income was made without an intent to make money. Then it just gets added as "other income" instead of creating a self-employed section. Honestly, it might just be fine since it's apparently being filled in the right place doing that (even there was clearly an intent to make an income from the investment).

TurboTax should just fix it and add an option saying it was just some unusual investments (e.g.: structured investments).

Re: 1099-MISC but not self employed

SharonD007 — Fri, 07 Feb 2025 18:33:14 GMT

Yes, your 1099-MISC can be entered as OTHER INCOME so it won't be considered self-employment or business income. First, you should make sure that if you created a business, that you delete it. Follow the instructions below:

Launch TurboTax
You want to make sure that if you created a business earlier, that you delete it:
1. Select Wages & Income
2. Scroll down to Self-employment Income and select Review (If it says Start, skip this)
3. You may see your 1099-MISC here, so delete it by clicking on the trash can on the right
4. Confirm that you want to delete and select Done.

Next, you will enter the 1099-MISC:

Scroll down to Other Common Income
Select Start or Revisit 1099-MISC and add 1099-MISC
Go through the interview questions and when you get to the screen which will ask you to describe the reason for the income, enter auto-callable contingent income securities.
Continue through the screens and when you get to the screen Do one of these common situations apply? select None of these apply. You will also select No that it didn’t involve work and No it didn’t involve the intent to earn money.

Re: 1099-MISC but not self employed

terlanmat68 — Sat, 22 Mar 2025 22:45:13 GMT

This is not working for me either. I do not get asked any question that allows me to select No that it didn’t involve work, and No, it didn’t involve the intent to earn money.

Instead, I'm taken immediately to Did the XXXX involve work that's like YYYY's main job? And then either answer results in :

Add a new line of work

We’ll include this income in the Self-Employed section (Schedule C) of your tax return. You can add any other self-employment income not on a 1099-MISC later.

Re: 1099-MISC but not self employed

AmyC — Sun, 23 Mar 2025 00:03:52 GMT

For the online version, select hobby to get around the work issue.

@terlanmat68

Re: 1099-MISC but not self employed

Pesca — Mon, 31 Mar 2025 11:27:17 GMT

Following those prompts worked for me last year for 1099misc for short-term disability payments (obviously not a business, right?), but this year it did not ask me if it was an attempt to make money. It seems to be an error or oversight in the software. I am not a tax expert, but here is what worked for me on the desktop version:

Click on Forms at the top

find Schedule 1

I compared my form from last year to the one from this year and saw that I needed to move $ from the 1099misc from line 3 (business income) to line 8z (other income) but the field could not be edited. It turns out you have to enter it on the worksheet and it will automatically populate the schedule 1.

find the form called "Other Income"

Go down to line 12 and enter "other income from box 3 of 1099misc and your dollar amount. It was entered on line 8z last year, but I am unable to edit those fields in forms. This puts the info on line 8z (other income) of the schedule 1, where I think it is supposed to be, for me anyway.

Go to step-by-step and find business income, schedule C

Delete the schedule C

This will take the $ out of line 3 (the business income line) on the schedule 1, but the 1099misc still shows an error because it wants to create the schedule C.

Go back to Forms mode and find your 1099misc form

I checked "other income" in box 3 of of 1099misc and the error went away.

Problem solved... hopefully

Re: 1099-MISC but not self employed

bngpeyla — Wed, 04 Mar 2026 21:37:11 GMT

I have income from the state of MN on a 1099-Misc, when I key it in as misc income and hit return it states "We'll include this income in the Self Employed Section C"

I have received this income every year since 2022, and it has always placed it in Misc Income..

I followed the directions in this help message, deleted the business it created deleted the schedule C.

Then went back to enter the data again with the same result it put it in the self employed section. Why is the software working differently this year? and how do I resolve?

I keyed in that this income is from Sustainable Forest Incentive Act.

Re: 1099-MISC but not self employed

DawnC — Wed, 04 Mar 2026 22:03:43 GMT

Delete the Schedule C and 1099-MISC again and this time when you re-enter the 1099-MISC, answer the question about how often you receive this income to 2025 ONLY. If you regularly receive the income, TurboTax will apply it to Self-Employment and place it on Schedule C. If you answer as follows, the income goes to Other Income - Line 8 of Schedule 1- Form 1040. As you enter the form:

After you enter the reason for the 1099-Misc, mark None of the above on the next screen (uncommon situations).
Answer Did the refund involve work that's like your main job? NO
Answer How often did you get income for refund? You got it in 2025 only
Answer Did the refund involve an intent to earn money? NO

How to delete forms in TurboTax Online

How to delete forms in TurboTax Desktop

If you treat your forest land as a business, you would typically report this on Schedule C. (counts as self-employment)
If you are a farmer, it goes on Schedule F. (counts as self-employment)
If you are an investor/individual and the land is for personal or investment use, it is generally reported as "Other Income" on Schedule 1 (Form 1040).

Re: 1099-MISC but not self employed

bngpeyla — Thu, 05 Mar 2026 19:48:19 GMT

Thank you. Those steps took care of the issue. I will keep your email so that I know this was direction from TurboTax.