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Level 1
April 16, 2026
Question

I received a 1099-MISC for paid leave oregon instead of a 1099-G. Turbotax wants to call this self-employment. How do i correct this?

  • April 16, 2026
  • 2 replies
  • 57 views
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2 replies

Level 6
April 16, 2026

1099-MISC income is generally not considered self-employment income if it is not earned through a regular, profit-seeking trade or business. Instead, it is reported as "Other Income" (Box 3) and is not subject to self-employment tax. Common examples include rent, prizes, awards, hobby income, or one-time sporadic payments.

 

When entering your 1099-Misc in TurboTax, you will need to answer the questions to let TurboTax know that the 1099-Misc meets the criteria above so it will not treat it as Self-employment income.

Level 2
April 16, 2026

You have 2 options;

1. Contact the payer and ask them to:

   a. Void the incorrect 1099-MISC

   b. Issue a corrected 1099-MISC showing $0

   c. Issue a 1099-G with the correct amount

2. If the payer is not able to do this

   a. Report the amount as unemployment compensation/paid leave benefits on the line where 1099-G amounts normally go (Form 1040, Schedule 1, Line 7)

   b. Attach a note in your tax package (digital or paper) saying, “Taxpayer received paid leave benefits incorrectly reported on Form 1099‑MISC. Income is properly reported as paid leave/unemployment compensation.” This protects you if the IRS matches the 1099-MISC to your return.

 

I hope this works out for you,

DrJam48