Solved: How do I prevent Turbo Tax from calculating SE Tax on a payment I received from a prior employer in 2016 on a 1099 for some phantom stock I had held in the company?
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How do I prevent Turbo Tax from calculating SE Tax on a payment I received from a prior employer in 2016 on a 1099 for some phantom stock I had held in the company?

I know the full distribution is Taxable Income but it was not earned as part of my current consulting business, which TT seems to want to do.  So yes I pay taxes but should not be paying Self Employment tax.  Any ideas?

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How do I prevent Turbo Tax from calculating SE Tax on a payment I received from a prior employer in 2016 on a 1099 for some phantom stock I had held in the company?

UPDATED FOR TAX YEAR 2019

 

You can enter the 1099-MISC in TurboTax as "Other Common Income," which is reported on line 8 of 1040 Schedule 1 and will not generate Schedule C or SE tax.  Please use the following steps:

  1. Click on Federal > Wages & Income.
  2. Scroll down to the Other Common Income section. 
  3. Click on the Start/Revisit box next Form 1099-MISC. 
  4. On the screen Did you get a 1099-MISC?  click on the Yes button.
  5. On the next screen, Let's get the info from your 1099-MISC, enter the information from the 1099-MISC.
  6. On the following screens, answer the following questions:
    • Did it involve work that's like your main job? No.
    • You got it in 2019
    • No, it didn't involve an intent to earn money

      7.  Continue through the rest of the interview screens. The income will appear as Other Income.

 

[Edited | 4/9/2020 |  12:44pm PDT]

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Highlighted
Level 14

How do I prevent Turbo Tax from calculating SE Tax on a payment I received from a prior employer in 2016 on a 1099 for some phantom stock I had held in the company?

UPDATED FOR TAX YEAR 2019

 

You can enter the 1099-MISC in TurboTax as "Other Common Income," which is reported on line 8 of 1040 Schedule 1 and will not generate Schedule C or SE tax.  Please use the following steps:

  1. Click on Federal > Wages & Income.
  2. Scroll down to the Other Common Income section. 
  3. Click on the Start/Revisit box next Form 1099-MISC. 
  4. On the screen Did you get a 1099-MISC?  click on the Yes button.
  5. On the next screen, Let's get the info from your 1099-MISC, enter the information from the 1099-MISC.
  6. On the following screens, answer the following questions:
    • Did it involve work that's like your main job? No.
    • You got it in 2019
    • No, it didn't involve an intent to earn money

      7.  Continue through the rest of the interview screens. The income will appear as Other Income.

 

[Edited | 4/9/2020 |  12:44pm PDT]

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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How do I prevent Turbo Tax from calculating SE Tax on a payment I received from a prior employer in 2016 on a 1099 for some phantom stock I had held in the company?

Thank you very much.
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