how to avoid schedule C

slimjimmy51 — Tue, 11 Feb 2025 15:08:25 GMT

I have legal services through the UAW Legal services plan trust. I get a 1099 Misc. with a small amount that needs to be claimed. The trust says no schedule C is needed but turbo tax still fills it out and it always tells me it needs to be corrected. How do I claim that small amount and avoid the schedule C?

Re: how to avoid schedule C

MinhT1 — Tue, 11 Feb 2025 15:10:12 GMT

If you receive a form 1099-MISC for a legal service plan, then you are not considered as self-employed and do not need to file a Schedule C.

In TurboTax Online, enter your form 1099-MISC by following these steps:

Open your tax return
Click Federal in the left-hand column then on Wages & Income
Navigate to the list of income categories
Locate the section Other Common Income and click on the down arrow on the right
Click Start next to Form 1099-MISC
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 in 2024, not in previous years and not in 2025, you will then have the screen where you can say that it did not involve an intent to earn money.

topic how to avoid schedule C in Business & farm

how to avoid schedule C

Re: how to avoid schedule C