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posted Mar 27, 2025 8:17:12 AM

How do I enter my wifes 1099 Misc incentive payment that she received for agreeing to practice medicine in a rural area? (She isnt self employed)

This incentive payment is predicated on her obtaining employment and practicing medicine in an underserved rural population, which she did, but is in no way self employed and doesnt do specific work tasks for the Payer of this incentive, a state department for workforce development.

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1 Replies
Expert Alumni
Mar 27, 2025 8:28:27 AM

If the income on the 1099-misc is not self-employment income, delete that 1099-misc and delete the Schedule C.  Then re-enter the 1099-misc as follows.   

 

Under Other Common Income, select Start or Revisit next to Form 1099-MISC.   Enter your 1099-MISC info on the Let's get the info from your 1099-MISC screen and click Continue.  

 

  1. On the Describe the reason for this 1099-MISC screen, enter a description of the income.  
  2. Click Continue.
  3. Select None of these apply on the Does one of these uncommon situations apply? screen.
  4. Select No, it didn’t involve work like my main job on the Did the involve work that's like your main job? screen.
  5. Select I got it only in 2024 on the How often did you get income for? screen.
  6. Select No, it didn’t involve intent to earn money on the Did the work involve an intent to earn money? screen.
  7. Select No on the Do you have another 1099-MISC? screen.

 

Answering differently to any of those three questions will imply self-employment and generate Schedule C.   If it is self-employment, you can use your name and home address as the business address.   And if it is not self-employment, don't forget to delete the Sched C that was erroneously started.  

 

I need to enter a 1099 - Am I Self-Employed? 

 

How to delete forms in TurboTax Online

 

How to delete forms in TurboTax Desktop