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Clarification. Are you sure you have a 1099-Misc and not a 1099-R? What kind of retirement income is it?
Yes, I got a 1099-MISC for this income. I retired from a law firm in 2021 and have been getting money for retirement income every year since then. I have no other connection to the firm at this point. In prior years, I have had a tax professional do my taxes and they never filed a Schedule C. But this year I'm doing my own taxes and now Turbo Tax wants me to file a Schedule C. I'm trying to figure out why and how I can declare the income without filing the Schedule C.
To avoid having the income treated as self-employment income, when you answer the questions after you enter your Form 1099-MISC, you need to indicate that you did not have a profit motive to receive the money, it was not associated with your job and you only received the income in the current year.
However, it appears the income was associated with your job, and as such it would likely be considered pension or wage income. If so, it would better be reported on a Form 1099-R or W-2. If it is deferred compensation from when you worked for the firm, it should be reported on a W-2 form and have payroll taxes deducted.
If you want to report it as wage income, you can do that in TurboTax in the Less Common Income section, then Miscellaneous Income, then Other income not already reported on a W-2 form.
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