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New Member
posted Apr 6, 2023 8:30:48 AM

Why am I being taken to Sch C when I reported $1,200 of Misc Income, a payment by a stock broker? I have spent the. past two hours going back and forth within TT?

The 1099-DIV from my broker has a section on 1099-Misc which included this amount paid as an incentive for investing more.

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1 Best answer
Expert Alumni
Apr 6, 2023 8:45:37 AM

If you receive a form 1099-MISC for an incentive from a stock broker, then you are not considered as self-employed and do not need to file a Schedule C.

 

In TurboTax, enter your form 1099-MISC and follow the interview until you arrive at the page titled Did this involve an intent to earn money?. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax.

 

In TurboTax, there is a work-around. Even if you may receive this income every year, say that you only receive the 1099-MISC only in 2022, not in previous years and not in 2023, you will then have the screen where you can say that it did not involve an intent to earn money.

1 Replies
Expert Alumni
Apr 6, 2023 8:45:37 AM

If you receive a form 1099-MISC for an incentive from a stock broker, then you are not considered as self-employed and do not need to file a Schedule C.

 

In TurboTax, enter your form 1099-MISC and follow the interview until you arrive at the page titled Did this involve an intent to earn money?. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax.

 

In TurboTax, there is a work-around. Even if you may receive this income every year, say that you only receive the 1099-MISC only in 2022, not in previous years and not in 2023, you will then have the screen where you can say that it did not involve an intent to earn money.