1099- Misc received for participating in medical study

[toofan1]

I participated in a one time medical study. I received form 1099-Misc. What line of Turbotax do I show it? It is not subject to Social Security Deductions.

[MinhT1 · Accepted solution]

If you receive a form 1099-MISC for participating in a medical study, then you aren't considered as self-employed and don't need to file a Schedule C.

In TurboTax, enter your form 1099-MISC and follow the interview until you arrive at the page titled Did this involve an intent to earn money?. Answer that this didn't involve an intent to earn money. The amount will be reported as Miscellaneous income and won't be subject to Self-employment tax.

In TurboTax, there's a work-around. Although you may receive this income every year, say that you only receive the 1099-MISC only in 2023, not in previous years, and not in 2024, you will then have the screen where you can say that it didn't involve an intent to earn money.

[Mjohnsen]

I went through the process and I did not have the option to answer the question about whether I did the medical study to make money.  TurboTax Deluxe simply told me I needed to create a Schedule C.  The income was reported on a 1099-MISC under Box 6 (Medical and Health Care Payments).  But there is no option or box to check to prevent creating a Schedule C.  TurboTax went so far as to inform me I can deduct my business expenses for this.  Thoughts? 

[PatriciaV]

The company that provided Form 1099-MISC should have used Box 3 Other Income. If you're comfortable entering the amount in Box 3 rather than Box 6, you should be able to indicate this was not an intent to make money (a business).

Your other option is to delete your 1099-MISC entry and instead report this as Other Income with a description of "Medical Study Participation." 

1. Start in Federal Taxes >> Wages & Income >> Less Common Income >> Miscellaneous Income >> Other Reportable Income. Click "Start" and work through the interview.
   -- Or search on "other reportable income", click on the "jump to..." link, then answer "No" to other wages. Click Start beside "Other reportable income" and follow the prompts.
2. After entering the info from the 1099-MISC, continue until you see the question about this being connected to your main job, and say "no."
3.  Check only the box for 2023 income. 
4. Then answer that this was not an "intent to make a profit." 

Those three answers should classify this as "Other Income", which will appear on Line 8 on Form 1040, and not self-employment on Schedule C.

@Mjohnsen

[redsnapper]

• I cannot prevent TurboTax from creating schedule C for the 1099-MISC Box 3 for Medical study participant. In TurboTax 2024, there is no question it asks that corresponds to these preceding answers.

[DaveF1006]

If the instructions do not appear, delete the 1099 MISC entry you made by going to the section of the return where you reported it.  When you select this, there should be a 1099 MISC summary screen. Delete the 1099 MISC by selecting either delete or if a trashcan icon appears, select that. Now report this 1099 MISC in the following manner.

1. Select Wages and income
2. Less Common income
3. Miscellaneous Income, 1099-A, 1099>start
4. Scroll to the bottom of the page to Other Reportable Income
5. Other taxable income, answer yes
6. Then give a brief description of the income and the amount listed. Describer this as 1099 MISC received for medical studies and then the amount.

[assemblyqueen]

I was part of a Medical test study and received a 1099 for the money I was paid to participate.  What taxes am I responsible for?  Since it was wasn't for a business do I need to pay the 15.3% self employment SS tax?

[CatinaT1]

No, this is not self-employment. Delete what you have entered so far and enter it using the steps below.

Income from a health study is 'Other Income' and is not subject to self-employment. I assume your amount in box 3 of your 1099-Misc.

Take the following steps:  

1. Sign in to TurboTax Online, click Continue your return, then pick up where I left off (if you are using TurboTax CD/ Download, then just open your return on your computer); 
2. Click on Federal Taxes at the top of the screen;  
3. Scroll down the page to the last section titled: 1099-Misc and Other Common Income; 
4. Select start or update next to the topic titled Income from Form 1099-Misc; 
5. Answer Yes, to the questions Did you get a 1099-Misc?;
6. Enter the information from your 1099-Misc;
7. Enter Medical Study for a reason for the 1099-Misc;
8. For uncommon situations, select  [Name] was in a research study and this was the payment;
9. You will then be asked if you perform a service to earn the money, say No.