topic 1099-misc triggering self-employment tax for unearned income in Business & farm

1099-misc triggering self-employment tax for unearned income

finnmarble — Mon, 09 Mar 2026 04:55:56 GMT

My late husband received payments from a non-qualified pension plan. It was reported on a W-2. As his widow, I now receive half of that amount. The income for me is on a 1099-misc. Turbotax is filing a Schedule C and taking self-emplyment tax. I don't think this is right!

Re: 1099-misc triggering self-employment tax for unearned income

ErnieS0 — Sat, 26 Feb 2022 03:34:08 GMT

It is not right. Go back and edit your 1099-MISC.

Select None of these apply on Does one of these uncommon situations apply?
Select No on Did the Pension involve work that's like your main job?
Select I got it in 2021 on How often did you get income for Pension?
Select No on Did the Pension involve an intent to earn money?

These steps will add your pension payment to income but not to self-employment tax.

Re: 1099-misc triggering self-employment tax for unearned income

finnmarble — Sat, 26 Feb 2022 13:34:44 GMT

Thank you. It worked.