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If you receive a form 1099-MISC for a legal service plan, then you are not considered as self-employed and do not need to file a Schedule C.
In TurboTax, enter your form 1099-MISC and follow the interview until you arrive at the page titled Did this involve an intent to earn money?. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax.
In TurboTax, there is a work-around. Although you may receive this income every year, say that you only receive the 1099-MISC only in 2018, not in previous years and not in 2019, you will then have the screen where you can say that it did not involve an intent to earn money.
I have tested the program for this. Please see the attached screenshot:
It worked for me only when I checked that I received it in 2019 but not in other years. You saved me a lot of frustration. Thanks.
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