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How to Classify a 1099-NEC Received from a Medical Trial

I received a 1099-NEC for participating in a medical trial. From the research I have done, it seems that this is income which should be reported under "other," however my choices within the TurboTax Deluxe 2025 (Windows) are: 1) Self-employment income, 2) Farm income, 3) Hobby, 4) Lawsuit settlement, 5)  Medicaid waiver payments that qualify as difficulty of care, and ) Income that should've been reported on a W-2.

 

Any advice would be appreciated. Thank you.

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1 Best answer

Accepted Solutions
MonikaK1
Expert Alumni

How to Classify a 1099-NEC Received from a Medical Trial

To enter income from participating in a medical study that was reported to you on Form 1099-NEC in TurboTax Deluxe:

 

  1. Go to the Income section
  2. Under Other Common Income, select Income from Form 1099-NEC
  3. Select Add a form, and "type it in myself'
  4. Enter the dollar amount and other information included on the form

Do not choose "self-employment" as the reason for the payment, as this would lead TurboTax to calculate self-employment tax. You are self-employed when you participate in a medical study. The screen may allow you not to choose any of the categories in the checkboxes.

 

You can also report it under Less Common Income, Miscellaneous Income, Other Reportable Income. 

 

Wherever you report the income, be sure to report is as a separate item rather than combining it with something else, so that the IRS information return matching program will find it.

 

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1 Reply
MonikaK1
Expert Alumni

How to Classify a 1099-NEC Received from a Medical Trial

To enter income from participating in a medical study that was reported to you on Form 1099-NEC in TurboTax Deluxe:

 

  1. Go to the Income section
  2. Under Other Common Income, select Income from Form 1099-NEC
  3. Select Add a form, and "type it in myself'
  4. Enter the dollar amount and other information included on the form

Do not choose "self-employment" as the reason for the payment, as this would lead TurboTax to calculate self-employment tax. You are self-employed when you participate in a medical study. The screen may allow you not to choose any of the categories in the checkboxes.

 

You can also report it under Less Common Income, Miscellaneous Income, Other Reportable Income. 

 

Wherever you report the income, be sure to report is as a separate item rather than combining it with something else, so that the IRS information return matching program will find it.

 

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

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