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Level 2
March 2, 2026
Solved

turbotax is forcing a schedule c for 1099 misc

  • March 2, 2026
  • 1 reply
  • 151 views

turbotax is forcing a schedule c (self employment) for a 1099 misc received for participating in a clinical trial. how do i stop this, and report the income without self employment tax/responsibility.  the previous answer was done in 2023 and is not working with my 2025 sofware (Home and business).

    Best answer by DoninGA

    @pschnoor9 You need to get a corrected form 1099-MISC and have the income entered in box 3.  The instructions for box 6 state - 

    Enter payments of $600 or more made in the course of your trade or business to each physician or other supplier or provider of medical or health care services. Include payments made by medical and health care insurers under health, accident, and sickness insurance programs. If payment is made to a corporation, list the corporation as the recipient rather than the individual providing the services.

     

    None of that explanation for box 6 applies to someone who earned income based on a clinical trial.  If the payer will not change the 1099-MISC, then you report the income as other income reported in box 3.

    1 reply

    DoninGA
    Level 15
    Level 15
    March 2, 2026

    To enter a Form 1099-MISC that is not for self-employment -

    Click on Federal (Personal using Home & Business)
    Click on Wages & Income (Personal Income using Home & Business)
    Scroll down to Other Common Income
    On Form 1099-MISC, click the start or update button


    On the screen Did you get a 1099-MISC?, click on Yes
    On the screen Let's get the info from your 1099-MISC, enter the amount received in box 3 and continue
    On the screen Describe the reason for this 1099-MISC, enter a reason and Continue
    On the screen Does one of these uncommon situations apply? - Select None of these apply and continue
    On the screen Did the (reason) involve work that's like (your name) main job - Select No and continue
    On the screen How often did (your name) get income for (reason) - Select 2025 and continue
    On the screen Did the (reason) involve an intent to earn money? - Select No and continue


    The amount entered from the Form 1099-MISC will be entered on Schedule 1 Line 8z
    The total from Schedule 1 Part I Line 10 flows to Form 1040 Line 8

    pschnoor9Author
    Level 2
    March 2, 2026

    Hello,

     
    Thank you for your response.  
     
    I should have been clearer with my question.  
     
    • This is for an amended return as the 1099 misc was received late
    • the income is reported in box 6; as soon as I complete for box six, the schedule c is forced.  No further information is asked (no option to "just say no")
    • this income was for participation in a clinical trial, not self employment
     
    best regards,
    patricia
    DoninGA
    Level 15
    DoninGALevel 15Answer
    Level 15
    March 2, 2026

    @pschnoor9 You need to get a corrected form 1099-MISC and have the income entered in box 3.  The instructions for box 6 state - 

    Enter payments of $600 or more made in the course of your trade or business to each physician or other supplier or provider of medical or health care services. Include payments made by medical and health care insurers under health, accident, and sickness insurance programs. If payment is made to a corporation, list the corporation as the recipient rather than the individual providing the services.

     

    None of that explanation for box 6 applies to someone who earned income based on a clinical trial.  If the payer will not change the 1099-MISC, then you report the income as other income reported in box 3.