I am not self employed but Turbo tax thinks that I am because I received a 1099 for an incentive program to move to another city as a remote worker. How do I fix this?

[ericjamesjohnson]

I entered my W-2 from my full time employer so I don't get why it is ignoring that and treating me as self employed. I just received an incentive to move.

[KrisD15]

Was this a 1099-MISC or 1099-NEC? 

Was it paid by the same company that hired you? 

[ericjamesjohnson]

It is a 1099 misc, and it was not paid by the company that I work for. It is an incentive program from the city of Tulsa to get us to move there. The program is called Tulsa Remote.

[JohnB5677]

You are correct.  You are not self-employed, but TurboTax thinks you are because of the way you entered it on your return.

• Wages & Income
• Scroll to Other Common Income
• Select Income from a 1099-MISC
• Post your information from the form [Continue]
• Describe the reason for this 1099-MISC
• Post Moving Incentive
• Does one of these uncommon situations apply?
• Select None of the above
• Did the moving incentive involve work that's like your main job?
• No
• How often did you get income for moving incentive?
• Check Got it in 2020
• Did the moving incentive involve an intent to earn money?
• Answer No

If you do not follow this posting procedure it will result in self-employment.  You would also have to pay 15.3% in self-employment tax (Social Security & Medicare).

[kaitnoone]

@JohnB5677 
I'm in the same situation and wondering how to proceed. I enter the form as Other Common Income --> Misc but when I go back to the Federal Dashboard, it's moved back under Self-Employment and I'm having to answer all the questions about treating it like a business. Is that correct?

[GeorgeM777]

To follow-up on the response from @JohnB5677, you might consider deleting the Schedule C form that was probably generated when you initially entered your 1099-Misc.  Deleting the Schedule C first, and then going back to enter the 1099-Misc income along the lines suggested by @JohnB5677, should allow you to enter the income in question as Other Income.  Here are the steps to delete a form in TurboTax.

1. Open or continue your return in TurboTax.
2. In the left menu, select Tax Tools and then Tools.
3. In the pop-up window Tool Center, choose Delete a form.
4. Select Delete next to the form/schedule/worksheet in the list and follow the instructions.

Here is a link to a TurboTax article discussing how to delete a form which you also may find helpful.

How to View and Delete Forms in TurboTax Online