Miscellaneous Income

[KMD493]

I hired someone to cut trees off my property and in turn he sent me a 1099-Misc for stump pay. Do I need to report this at all as income as I am not the one who was employed to do the work and I do not qualify as self employed. This was something but not a job done my me?

[PattiF]

This income would not be entered as self-employment income. It is an unusual situation to be paid for a stump, but it does happen.

Here is now to enter the 1099-MISC so that the money won't be tax as earned income. 

You can enter the 1099-MISC in TurboTax as "Other Common Income," which is reported on line 8 of 1040 Schedule 1 and will not generate Schedule C or SE tax.  Please use the following steps:

1. Click on Federal > Wages & Income.
2. Scroll down to the Other Common Income section. 
3. Click on the Start/Revisit box next Form 1099-MISC. 
4. On the screen Did you get a 1099-MISC?  click on the Yes button.
5. On the next screen, Let's get the info from your 1099-MISC, enter the information from the 1099-MISC.
    
6. On the following screens, answer the following questions:
   • Did it involve work that's like your main job? No.
   • You received it in 2020
   • No, it didn't involve an intent to earn money

 7.  Continue through the rest of the interview screens. The income will appear as Other Income.

[KMD493]

Thank you for your guidance!