Are second year Trustee fees treated like business income?

[jdworking]

2017 is the second year I received a fee for acting as a Trustee for a friends estate. When I acknowledge the fee received in 2016 Trubo Tax wants to make it a business. This is not a business and I am not a professional trustee. How and where should this fee be entered to avoid tax? A 1099 Misc Income was issued for the fee. 

[Carl]

Note that after three years of this income, the IRS will consider it to be self-employment income. If they do, you have no choice or say in the matter.

Reporting 1099-MISC (box 3 or box 7) that is not self-employment income

Under the Wages & Income tab (or Personal Income tab) scroll down to Other Common Income and elect to start/update Income from form 1099-MISC. Then click YES to indicate you have a 1099-MISC.

Enter the 1099-MISC exactly as printed, and then Continue.

Enter the reason you got this money – be it scholarship, bonus, streaking butt naked across the 50 yard line of the super bowl, whatever. Then continue.

Select None of these apply, then Continue.

Select No, it didn’t involve work….. and Continue.

Select ONLY the tax year for which this specific 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year. Then Continue.

Select No, it didn’t involve an intent to earn money, then Continue.

Select NO, then Continue.

Click the DONE button, and that does it.

[jdworking]

Thank you Carl.