My 1099-MISC form has an amount in box 3 only. Why is it showing as self employment income?

[Hal_Al · Accepted solution]

The IRS considers anything in box 7 of 1099-MISC to be self employment income. TurboTax (TT) aggressively steers you in that direction, even if the amount is in box 3. So, your answers to the interview questions are telling TT that what you did for this money qualifies as self employment.  Money paid for work performed, is usually self employment income.

That said, the key to getting TT to treat it as other income is to follow these steps:

 Enter the 1099-Misc

On the next screen Describe what the payment was for

On the next screen select "none of these apply"

On the next screen select "No it didn't involve work like my main job"

On the next screen select "I got it in 2018" ONLY

On the next screen select No, it didn't involve intent to earn money

TT will put the amount on line 21 of form 1040 (schedule 1) as other income

[Critter]

Delete what you entered where ever you entered it and do this instead ....

You can report it as other income on Sch 1  line 21. Here's how to enter it in TurboTax.

·         Click the Federal Taxes tab ( Personal in the Home & Business version)

·         Click Wages & Income. (Personal income in the H & B version)

·         On the screen "Your 2018 Income Summary," scroll all the way down to the last section, "Less Common Income."

·         Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."

·         On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."

·         The next screen asks, "Did you receive any other taxable income." Click Yes.

·         On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.

·         On the next screen click Done.

The income will be reported on Form 1040 line 21 with the description that you entered.