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New Member
posted Apr 11, 2023 9:40:05 AM

How to enter 1099-misc -- it was a benefit, not income, but TurboTax is considering it as self-employment income.

I'm doing my 82-year-old dad's taxes. He got a 1099-misc for volunteer firefighter pension and another for the legal services benefit from General Motors.  This is not self employment

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Expert Alumni
Apr 11, 2023 9:50:59 AM

If you receive a form 1099-MISC for a benefit, then you are not considered as self-employed and do not need to file a Schedule C.

 

In TurboTax, enter your form 1099-MISC and follow the interview until you arrive at the page titled Did this involve an intent to earn money?. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax.

 

In TurboTax, there is a work-around. Although you may receive this income every year, say that you only receive the 1099-MISC only in 2022, not in previous years and not in 2023, you will then have the screen where you can say that it did not involve an intent to earn money.