If I have received a 1099 Misc due to an honorarium that I received for delivering a lecture at an out of state medical college. How should I report that honorarium ?

[LinaJ2020]

How often do you do it?  Generally, doing honorariums occasionally are not considered self-employment, you would enter it as miscellaneous income. ( line 8 on Schedule 1 and Form 1040 )  However, if you do it regularly and frequently, you should report it as self-employment and file a schedule C to pay self-employment taxes.  I am also posting an answer from LeeM for your reference: honorarium

In TurboTax online program:

• Sign in to your account, select Pick up where you left off
• To the right upper corner, in the search box, type in "other reportable income" and Enter
• Select Jump to other reportable income 
• Follow prompts

To file a schedule C, here are the steps:

• At the right upper corner, in the search box, type in schedule C and Enter 
• Select Jump to schedule C 
• Follow prompts

[funkmaster]

I am in a similar situation. My wife received an honorarium for something she would not do regularly. I understand that we would not need a schedule C in this situation.

I first added the 1099-MISC in the "Other Common Income" -? "1099 Misc Section". If I follow the instructions in your message, all the prompts in the "Other Reportable Income" section say do not report income here that has been reported on a 1099-misc.

Whenever I move to Wrap up Income, the prompts say my I have a 1099-MISC that reports income on line 7, but this income is not reported on another line or schedule. I prompted to review the 1099-MISC again, and then an entry is created under the "Self-employment income and expenses" section with a label "for review", which is not what I want. Is there any way out of this cycle?

[DawnC]

If the income is in Box 7, TurboTax will treat it as self-employment and put it on Schedule C.  If it is not supposed to be in Box 7, you will need to get a corrected 1099-MISC.  

If the non-work related income is in Box 3, you can enter under 'Other Common Income' where it is not subject to self-employment taxes.   To do this:

Delete the entries you previously made.  Then re-enter the 1099-MISC, but only enter it one time in section::  Other Common Income - Form 1099-MISC.  Do not enter the form under the Other Reportable Income section.   Enter all the fields with data (including Box 3) from the 1099 and on the follow-up screens, indicate:

• Describe the reason - honorarium
• None of these apply
• It is not her main job/career
• She only got the income this tax year (multiple years of similar income is self-employment)
• No intent to earn money 

The income will show on Line #8, Other Income rather than self-employment.  Check your Form 1040 to verify it is in the correct place.  The review prompt should not occur as long as you deleted your previous entries.  

[funkmaster]

The income is in box 7. Per the instructions on the IRS 1099 form for box 7: 

https://www.irs.gov/pub/irs-prior/f1099msc--2019.pdf

"Shows nonemployee compensation. If you are in the trade or business of catching fish, box 7 may show cash you received for the sale of fish. If the amount in this box is SE income, report it on Schedule C or F (Form 1040), and complete Schedule SE (Form 1040). You received this form instead of Form W-2 because the payer did not consider you an employee and did not withhold income tax or social security and Medicare tax. If you believe you are an employee and cannot get the payer to correct this form, report this amount on the line for “Wages, salaries, tips, etc.” of Form 1040 (or Form 1040NR). You also must complete Form 8919 and attach it to your return. If you are not an employee but the amount in this box is not SE income (for example, it is income from a sporadic activity or a hobby), report this amount on the “Other income” line of Schedule 1 (Form 1040) (or Form 1040NR)."

Wouldn't this imply that income in box 7 is not necessarily self-employment, so if the honorarium was reported as income on box 7, that would not necessarily be an error? Should turbo-tax always treat income on box 7 as self-employment income?

Thanks.

[CatinaT1]

You can report something listed in box 7 as other income.  This allows you to report income reported in box 7 as other income not subject to self-employment.

Take the following steps: 

1. Sign in to TurboTax Online, click Continue your return, then pick up where I left off (if you are using TurboTax CD/ Download, then just open your return on your computer);
2. Click on Federal Taxes at the top of the screen;
3. Scroll down the page to the last section titled: Other Common Income and click show more;
4. Select start or update next to the topic titled Form 1099-Misc;
5. Answer Yes, to the questions Did you get a 1099-Misc?
6. Enter the information from your 1099-Misc.
7. Enter Honorarium for the reason for the 1099-Misc
8. None of the uncommon situations will probably apply and if so, you can click None of these apply
9. Select No, it didn't involve work that's like your main job.
10. Indicate how often you get this income.
11. Select No, the honorarium did not involve an intent to earn money.

This will add the income to Line 7a on your 1040 form.  The income will be subject to income tax, but not self-employment tax.