1099-MISC - Intent to Earn Money

[cdcas]

I received a payment for moving out of an apartment building after a developer purchased it. I was on a month-to-month lease and I had to move out regardless.

Here's the example that TurboTax provided:

"You had an intent to earn money if you signed up for a job to make money.

Example: Jennifer works as a sales associate at a food company. She agreed to take this job because she wanted to get paid for it. (She wouldn't do it for free.) She had an intent to earn money."

I would have moved out for free. (I had to move out.) Was this payment an intent to earn money? If I check yes, TurboTax thinks I'm self-employed. This is untrue. So I don't know how to answer this question.

[DavidD66 · Accepted solution]

No, it wasn't an "intent to make money" in the sense that the program is asking.  I see two options: 

1. Report the 1099-MISC as other income (not subject to self-employment tax).
2. Report it as self-employment income, if you have expenses in excess of 15% of the payment that you can deduct.    

To report as other income, while logged in to your return:

• Click on Federal
• Click on Income & Expenses
• Scroll to the bottom of the "Your income and expenses" page, and click on "Less Common Income" 
• Click on "Show more"
• At the bottom of the page, next to "Miscellaneous Income..." click on Start/Revisit
• Other reportable income - click on Start, then answer Yes 
• Give a description and enter amount of income from the 1099-MISC

This amount will also be reported on line 8 of Schedule 1 (Form)

[cdcas]

Thank you so much! This also solves my issue concerning being marked as self-employed. I appreciate you, man!