1099-Misc Box 3 income that is not from self-employment

[ez2025]

Hello, I received a 1099-MISC as part of my consolidated 1099 from my Ameriprise brokerage account. This 1099-MISC reported income in Box 3 in the amount of $5.94, and the supporting notes say that this amount is a fee rebate that is related my account that is an actively managed advisory account within a taxable brokerage account. I found this supporting information on Ameriprise's website:

"For Accounts with alternative fee billing arrangements, the entire Investments and Infrastructure Support Credit will be considered miscellaneous income if the originating Account is a non-qualified Account. Account holders receiving aggregate miscellaneous income of $600 or more annually will receive an IRS Form 1099-MISC, Miscellaneous Income, from AEIS. Account holders receiving miscellaneous income amounts under $600 annually generally will not receive an IRS Form 1099- MISC from AEIS, but will be responsible for reporting the income to the IRS."

From what I understand, 1099-MISC income in Box 3 is typically in connection with self-employment activities. When I start filling out the 1099-MISC questions in Turbotax online, it keeps taking me down a path where it is characterizing this $5.94 income as self employment income, and forcing me to move it to a Schedule C and create a description for "a new line of work". This doesn't seem accurate but I have no idea where this $5.94 should end up, other than exactly where it was reported to me, which is just 1099-MISC, box 3. 

Can you help me to figure out how to get Turbotax to accept this value without having to characterize it as some sort of self employment income, which it clearly is not? Thank you!

[KrisD15 · Accepted solution]

Enter the 1099-MISC Under

Wages & Income

Other Common Income

Income from Form 1099-MISC   START

Enter the 1099-MISC as it was reported, Type "Rebate" in for the description, 

Select "None of these apply" for uncommon situations, 

"NO" not like main job, 

Only got it in 2024, 

"NO" no intent to earn money, 

DONE

 These are TurboTax questions, not IRS questions. These need to be the answers to let TurboTax know it is not Self-Employment.

The 1099-MISC  entry will be on Schedule 1 line 8z

[myfroggy610]

This is what was recommended to put in income that was reported on a 1099 MISC but is not self-employment.  However, there is no question that asks if the intent was to earn money.  What do I do?

Enter the 1099-MISC as it was reported, Type "Rebate" in for the description,

Select "None of these apply" for uncommon situations,

"NO" not like main job,

Only got it in 2024,

"NO" no intent to earn money,

DONE

[PatriciaV]

After you choose "None of these apply" at the bottom of the uncommon situations page, you should see this screen. Answer "No, it didn't involve work like your main job."

You should then be asked how often you get this income (generally you got it this year only).

The next page asks if it was an intent to earn money.