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?

prullan · ‎June 6, 2019

KittyM · ‎June 6, 2019

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.

KittyM · ‎June 6, 2019

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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