IRS memo 1402(c) (1,2)

[78752co]

How do I enter 1099-Misc Income that is not subject to self employment taxes?  I am an appointed public official that is paid a fee when hearing protest cases.

[ReginaM · Accepted solution]

To enter a 1099-Misc where you are not charged self-employment tax, follow these steps in TurboTax:

1. While in your Tax Home,
2. Select Search from the top right side of your screen,
3. Enter 1099-Misc
4. Select Jump to 1099-Misc,
5. Follow the On-Screen Prompts, until you get to the question that asks, Did the involve work that's like your main job?  Answer, No it didn't,
6. Continue through the on-screen prompts until you are asked this question, Did the involve an intent to earn money?  Answer, No it didn't.

This should take care of you!

[AmeliesUncle]

The income still needs to be reported on Schedule C as a business.

But if you are POSITIVE it is not subject to Self Employment Tax, then you can go into 'Business Taxes' and make an adjustment to the Self Employment Tax.

[KatrinaB48]

Was the income reported in box 3 or box 7 of form 1099-misc?

[78752co]

It is in Box 7.

[KatrinaB48]

Since the income was reported in box 7 you must report it on a schedule c and deduct the expense per the directions above.