This medical payment is reportable as income, but not as self-employment income requiring a Schedule C.
Report the income as Other Income on Schedule 1 line 8z (this amount will carry-forward to line 8 on IRS Form 1040.
Enter 1099-Misc, Box 6 (for medical payment).
- Click on Tax Home.
- Down the left side of the screen, click Federal.
- Click on Wages & Income.
- Scroll down to Less Common Income. Click down arrow to the right.
- Click to the right of Miscellaneous income.
- Click to the right of Other reportable income.
- At the screen Other Taxable Income enter ‘State Medical Payment’" (or something similar).
Please see example snippet below.

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