$500 income, non-employee, not a contractor or business

[Flagship]

Received $500 labor income to help a landlord get his house ready for rent.  This is non-employee income that would be reported on 1099-NEC by the Landlord's LLC if it was $600 or more since I am not his employee, not a contractor and not a business.  This was a one time event.

How do you report this income?

Thank you.

[ee-ea]

This applies to Form 1099-NEC and to other taxable income without a report.

Enter it in the personal section, Other Common Income Form 1099-MISC.  To ensure it does not go to Schedule C (self-employment), you will answer the follow-up questions accordingly. 

On the Describe the reason for this 1099-MISC screen, enter a description of the other income. (award/stipend)

Select None of these apply on the Does one of these uncommon situations apply? screen.

Select No, it didn’t involve work like my day job on the Did the involve work that's like your main job? screen.

Select I got it ONLY in 2023 on the How often did you get income for? screen.

Select No, it didn’t involve intent to earn money on the Did the work involve an intent to earn money? screen.

Answering differently to any of these questions will imply self-employment and generate Schedule C.  

Please give feedback. If this helps click “Thumb” or “Best Answer” if it’s a solution.

[Flagship]

Thank you for responding.  That shows the figure on 8i, Prizes and Awards.  According to IRS website instructions(which they don't show you how to do it), the 500 should show on 8j, Activity Not Engaged In For Profit Income.

Can you please tell me how to get it there.

[Hal_Al · Accepted solution]

Q. How do I get the 500 on line 8j, of Schedule 1 (Activity Not Engaged In For Profit Income)?

A. It can't be done in TurboTax (except in the forms mode, not available online).

The best you can do it put it on line 1h of form 1040 (other earned income) or line 8z of Schedule 1 (other income). "Other income" is not earned income, for the earned income credit.  Line 8z is the correct place to claim income from a "one time gig" exception to self employment. 

Enter at the 1099-Misc screen in box 3,  even if you didn't get a 1099-Misc

On the next screen Describe what the payment was for

On the next screen select "none of these apply"

On the next screen select "No it didn't involve work like my main job"

On the next screen select "I got it in 2023" ONLY (even if you get/got it in other years, this is a necessary workaround for the no intent to earn money situation)

On the next screen select No, it didn't involve intent to earn money

TT will put the amount on line 8z  of Schedule 1 as other income

See http://www.journalofaccountancy.com/Issues/2009/Jul/20091639.htm

[Flagship]

Thank you very much for your help, and the very clear instructions and reasoning.  The Sch 1 now shows 1099-MISC, $500 on line 8z.