1099-Misc Nonemployee compensation

[rwpersons]

I worked in 2019 for a county appraisal review board hearing tax protests. I was paid by the appraisal district. They trained me and provided extensive instruction on how to perform my duties; provided the tools and equipment for the work; and determined how, when, and where to do the work. They paid me on a regular basis - I did not bill them for the work. They did not take deductions from my pay, and reported my earnings on a 1099-misc, box 7. My coworkers and I were told in advance that although we were not self-employed, our earnings would be reported as if we were. I followed instructions addressing this in previous questions ("Why is the 1099-MISC being reported as a Business...") so the compensation is shown on schedule 1, line 8, as other income. Here's my new problem: I want to contribute to an IRA, but Turbo Tax does not consider this to be earned income. This was not passive or investment income - I earned it by showing up for work. I do not have other earned income so it's important that this be considered earned. Is there a way to address this in TurboTax?

[rwpersons]

Some additional information relevant to my question. The position I held with the appraisal review board  was an appointed position. According to the IRS publication, Quick Reference Guide for Public Employers (February 2014), elected and appointed officials are generally employees for federal income tax withholding purposes. Revenue rulings 61-113 and 74-608 support this conclusion. My question is how to proceed with recording my income from the appraisal review board as earned income even though it is reported on 1099-misc, box 7.

[MinhT1]

Income reported in box  7 of form 1099-MISC is self-employed income and is definitely earned income.

TurboTax will treat this income as earned income and should allow you to contribute to an IRA, except if you are limited by income when you are also an employee and are covered by a retirement plan at work.

Please read this IRS document for more information.

[rwpersons]

Thank you for the response. The situation is that this is earned income, but it is not subject to self employment tax. From my review of IRS (e.g., IRS presentation, Unique Employment Tax Classification issues in Government Entities; Revenue Rulings 61-113 and 74-608; and IRS Code 1402(c)(1)), it appears the Board should have issued a W-2 as I was their employee. I plan to contact the Board in an attempt to obtain a W-2; if unsuccessful, I'll follow IRS guidance to file a Schedule C with the 1099-Misc amount as income to avoid any penalties from late filing or taxes owed, and also file a Form SS-8 Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. This is a unique and frustrating situation and I hoped to find someone who has dealt with this exact situation who could share their experience.

[DawnC]

That is how you should handle to cover all of your bases.  Let the IRS determine your status by filing the SS-8.  Filing the Schedule C will ensure you avoid any penalties or late filing fees as well as allow you to take the IRA deduction by reporting earned income.