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Level 1

1099 misc box 3 other income is pension, ordinary income, not SE. How do I report this w/o paying SE tax?

L need to know how to report this as ordinary income and not SE income.  Please help

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Level 18 rjs
Level 18

1099 misc box 3 other income is pension, ordinary income, not SE. How do I report this w/o paying SE tax?

Here's how to enter a 1099-MISC with income in box 3 in TurboTax so that it is reported as "other income" on Schedule 1 line 21.

  • Click Federal Taxes.
  • Click Wages & Income.
  • Click "I'll choose what I work on" or "Jump to a full list."
  • On the screen "Your 2018 Income Summary," scroll down to the section "1099-MISC and Other Common Income." Click the Start button for "Income from Form 1099-MISC."
  • The next screen asks "Did you get a 1099-MISC?" Click Yes.
  • On the next screen enter the information from the 1099-MISC form, then click Continue.

TurboTax will now ask a series of questions about the 1099-MISC income. Answer as follows, even if some of the answers aren't true.

  • "Describe the reason for this 1099-MISC." - It doesn't matter what you enter. Enter a short description such as "Pension." Click Continue. You will see this description used in some of the subsequent questions, but it will not appear on your tax return.
  • "Does one of these uncommon situations apply?" - Select the last choice, "None of these apply," and click Continue.
  • "Did the Pension involve work that's like your main job?" - Select No and click Continue.
  • "How often did you get income for Pension?" - "I got it in 2018" will already be checked. Don't check any of the other boxes. Just click Continue.
  • "Did the Pension involve an intent to earn money?" - Select No and click Continue.

This will report the income as "other income" on Form 1040 line 21 with the description "Other Income from box 3 of 1099-Misc." It will not be subject to self-employment tax.

9 Replies
Level 20

1099 misc box 3 other income is pension, ordinary income, not SE. How do I report this w/o paying SE tax?

Box 3 does not report SE income.  Pension income is reported on a 1099-R, not a 1099-MISC.

What is the income for?
Level 1

1099 misc box 3 other income is pension, ordinary income, not SE. How do I report this w/o paying SE tax?

My pension for some reason is reported on 1099Misc. I have checked with pension department multiple times and is to be treated like ordinary income. TT seems to default it to SE income
Level 20

1099 misc box 3 other income is pension, ordinary income, not SE. How do I report this w/o paying SE tax?

Is this some sort of non-profit organization that is paying it?

A pension is ordinary income, but reported on a 1099-R.

A 1099-MISC box 3 is not subject to SE tax, only box 7 income is.

@dmertz have you come across a pension on a 1099-MISC before?  - Does not seem right.
Level 1

1099 misc box 3 other income is pension, ordinary income, not SE. How do I report this w/o paying SE tax?

I have complained about the confusion to the organization. It is a major medical group pension. Previously I could double click on line 21 and add and be taxed as ordinary income but if course the firm has changed
Level 1

1099 misc box 3 other income is pension, ordinary income, not SE. How do I report this w/o paying SE tax?

The 1040 has changed since last year
Level 20

1099 misc box 3 other income is pension, ordinary income, not SE. How do I report this w/o paying SE tax?

Sounds like that might be some sort of private plan and does not fall under the defined benefit pension plan regulations.

Actually I don;t know how to enter it - I will ask others.
Level 20

1099 misc box 3 other income is pension, ordinary income, not SE. How do I report this w/o paying SE tax?

I agree, it seems that these payments should either have been reported on Forms 1099-R or W-2.  I think it should only potentially be in box 3 of a Form 1099-MISC if the recipient is deceased and the income is income in respect of a decedent or if they are termination payments in certain cases for insurance salespeople.
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Level 18 rjs
Level 18

1099 misc box 3 other income is pension, ordinary income, not SE. How do I report this w/o paying SE tax?

Here's how to enter a 1099-MISC with income in box 3 in TurboTax so that it is reported as "other income" on Schedule 1 line 21.

  • Click Federal Taxes.
  • Click Wages & Income.
  • Click "I'll choose what I work on" or "Jump to a full list."
  • On the screen "Your 2018 Income Summary," scroll down to the section "1099-MISC and Other Common Income." Click the Start button for "Income from Form 1099-MISC."
  • The next screen asks "Did you get a 1099-MISC?" Click Yes.
  • On the next screen enter the information from the 1099-MISC form, then click Continue.

TurboTax will now ask a series of questions about the 1099-MISC income. Answer as follows, even if some of the answers aren't true.

  • "Describe the reason for this 1099-MISC." - It doesn't matter what you enter. Enter a short description such as "Pension." Click Continue. You will see this description used in some of the subsequent questions, but it will not appear on your tax return.
  • "Does one of these uncommon situations apply?" - Select the last choice, "None of these apply," and click Continue.
  • "Did the Pension involve work that's like your main job?" - Select No and click Continue.
  • "How often did you get income for Pension?" - "I got it in 2018" will already be checked. Don't check any of the other boxes. Just click Continue.
  • "Did the Pension involve an intent to earn money?" - Select No and click Continue.

This will report the income as "other income" on Form 1040 line 21 with the description "Other Income from box 3 of 1099-Misc." It will not be subject to self-employment tax.

Level 1

1099 misc box 3 other income is pension, ordinary income, not SE. How do I report this w/o paying SE tax?

I figured you can still double click on Line 21 and enter that way. Thanks for your timely help