turbotax is forcing a schedule c for 1099 misc

[pschnoor9]

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).

[DoninGA]

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

[pschnoor9]

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 · Accepted solution]

@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.

[DianeW777]

It seems the payer is not quite clear on how to report this to a person participating in a drug trial. You will see in the details provided you do not fit into this category. See the instructions below to report the income without being subject to self employment income or self employment taxes.

The income is listed as Medical and Healthcare Payments. According to the instructions for the Form 1099-MISC, there is a requirement to report this payment for your participation in a drug trial, as self employment. This is the reason there is no further information required. 

• Box 6. For individuals, report on Schedule C (Form 1040).
  • Form 1099-MISC Instruction (to the payer): Payments to persons providing health care services often include charges for injections, drugs, dentures, and similar items. In these cases, the entire payment is subject to information reporting. 

Other Miscellaneous Income: If you use this method, delete the Form 1099-MISC.

1. Sign into your TurboTax Online account
2. Go to Tax Home (left panel)  Wages and Income  section
3. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
4. Select Other reportable Income > Enter a description (----) and the amount

@pschnoor9 

[Edited: 03/02/2026 | 1:37 PM PST]

[pschnoor9]

Thank you!  I have notified the issuer that i need corrected 1099s.