How do I report 1099-MISCs received for annually received trustee fees when I am not a professional trustee? TurboTax treats such income as subject to SE tax.

[bluecar80]

The 1099-MISCs are for trusts granted by a family member who is in relatively good health apart from some cognitive decline. Therefore, the 1099-MISCs will likely continue for quite a few years. So when TurboTax asks if I will get another 1099-MISC next year, I answer yes. It gives no option to say the 1099-MISC isn't from a business involving an intent to earn money. Once I do this, I see TurboTax's "Federal Tax Due" increase because SE taxes owed are added. The CPA that is doing the tax returns for the trust sends the 1099-MISC to document the expenses incurred by the trust. Because I'm a family member helping a relative, not a professional trustee, is there a way to report the 1099-MISC to avoid the SE tax? In TurboTax Deluxe 2024, the "Less Common Income > Misc. Income" section says don't report 1099-MISC there.

[SusanY1 · Accepted solution]

Update your answer to the question about receiving the 1099-MISC to "no" for next year.  This is a software question designed to help ensure the proper treatment of the 1099.  Your situation doesn't quite fit the typical scenarios that the software is testing for here, so that change should move the answer to the right place on the tax return and remove the self-employment tax.  

This answer isn't an IRS question and doesn't get transferred to your tax return so it won't result in any false report on your return.