Solved: I receive a 1099-Misc form that reports income from a separation from a former employer. Any way to avoid Self Employment Tax? I'm not really in business?
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I receive a 1099-Misc form that reports income from a separation from a former employer. Any way to avoid Self Employment Tax? I'm not really in business?

 
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Level 2

I receive a 1099-Misc form that reports income from a separation from a former employer. Any way to avoid Self Employment Tax? I'm not really in business?

To correctly enter the 1099-MISC so that it does not prompt a Schedule C, take the following steps:

  • In your open Federal return, choose the tab for Wages & Income
  • Tab through or down to Other Common Income (Show More) and Start/Revisit Form 1099-MISC
  • Edit the 1099-MISC if you already entered it, or Add it now and enter the information on the form, then Continue.
  • On the screen Describe the reason for this 1099-MISC enter the reason you received the income.
  • On the screen Does one of these uncommon situations apply? choose None of these apply.
  • On the screen Did the [Description] involve work that's like [Name's] main job? answer No.
  • On the next screen, choose the year you received the money.  (In this case, 2018.)
  • On the screen Did the [Description] involve an intent to earn money? choose No and complete the interview.

A corresponding entry will appear on Form 1040, Schedule 1, Line 21 of your return.


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1 Reply
Level 2

I receive a 1099-Misc form that reports income from a separation from a former employer. Any way to avoid Self Employment Tax? I'm not really in business?

To correctly enter the 1099-MISC so that it does not prompt a Schedule C, take the following steps:

  • In your open Federal return, choose the tab for Wages & Income
  • Tab through or down to Other Common Income (Show More) and Start/Revisit Form 1099-MISC
  • Edit the 1099-MISC if you already entered it, or Add it now and enter the information on the form, then Continue.
  • On the screen Describe the reason for this 1099-MISC enter the reason you received the income.
  • On the screen Does one of these uncommon situations apply? choose None of these apply.
  • On the screen Did the [Description] involve work that's like [Name's] main job? answer No.
  • On the next screen, choose the year you received the money.  (In this case, 2018.)
  • On the screen Did the [Description] involve an intent to earn money? choose No and complete the interview.

A corresponding entry will appear on Form 1040, Schedule 1, Line 21 of your return.


View solution in original post

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