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dstrat6134
New Member

Received 1099 Misc for fiduciary fees. TurboTax home & business wants to set up as new business and charge self employment tax. Where to enter so no self emploiyment tax?

I received a 1099 misc (other income) for fiduciary fees from my dad's estate which is not subject to self employment tax.  I also have a small business which is subject to self employment tax.  When I enter the 1099 for fiduciary fees, turbo tax sets up a new business and calculates self employment tax.  How do I enter this 1099 so it isn't subject to self employment tax? 

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Accepted Solutions
Hal_Al
Level 15

Received 1099 Misc for fiduciary fees. TurboTax home & business wants to set up as new business and charge self employment tax. Where to enter so no self emploiyment tax?

Enter the 1099-Misc

On the next screen Describe what the payment was for

At the screen "Does one of these uncommon situations apply", select "None of these apply". 

On the next screen select "No it didn't involve work like my main job"

On the next screen select "I got it in 2016" ONLY

On the next screen select No, it didn't involve intent to earn money

TurboTax will put the amount on line 21 of form 1040 as other income

Lying to TurboTax to get it to do what you want does not constitute lying to the IRS. But, if the amount is in box 7, there's a good chance you will get a letter from the IRS asking you to explain why it's not self employment.

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1 Reply
Hal_Al
Level 15

Received 1099 Misc for fiduciary fees. TurboTax home & business wants to set up as new business and charge self employment tax. Where to enter so no self emploiyment tax?

Enter the 1099-Misc

On the next screen Describe what the payment was for

At the screen "Does one of these uncommon situations apply", select "None of these apply". 

On the next screen select "No it didn't involve work like my main job"

On the next screen select "I got it in 2016" ONLY

On the next screen select No, it didn't involve intent to earn money

TurboTax will put the amount on line 21 of form 1040 as other income

Lying to TurboTax to get it to do what you want does not constitute lying to the IRS. But, if the amount is in box 7, there's a good chance you will get a letter from the IRS asking you to explain why it's not self employment.

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