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New Member
posted Mar 21, 2024 3:58:15 PM

Hospital Indemnity 1099-MISC

My wife was in the hospital for childbirth last year. Her hospital indemnity plan through her employer paid out for her stay. We got a 1099-MISC. I understand that it counts as income, however, why is TurboTax counting it as "self-employment" income? Additionally, I don't think we should be getting "Qualified Business Income Deduction" from it, since it wasn't a business. It was just the plan paying out a bit for her hospital stay. Should we be classifying this as something else so that we don't get a business deduction? On the 1099-MISC it was in box 3.

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1 Replies
Expert Alumni
Mar 21, 2024 4:03:57 PM

When you enter the 1099-MISC, be sure to answer the questions in the interview as 

No, not like work/job

only received in 2023

no, not as an intent to make money

 

I can't imagine you answering these questions any other way in your situation, are you sure you did not enter this as a 1099-NEC or under Self-Employment?