You can report the $8000 as other income, not as self-employment
Follow these steps:
- Open or continue with your return
- Click on Show more next to Less Common Income under the Income & Expenses section
- Click on Start/Revisit next to Miscellaneous Income, 1099-A, 1099-C
- Click on Start next to Other reportable income.
If you want to include this as self-employment and pay the Social Security and Medicare taxes, you can enter this as a business. Instead of entering your EIN, use your Social Security Number.
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