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?

[Barrygbg1]

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?

[IreneS · Accepted solution]

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]

[Barrygbg1]

Thank you very much.