One time tax rebate payment for MN

[Karen B52]

I reported the MN Tax Rebate on my federal return, and since it was on Form 1099-MISC, Turbo Tax assumed I owe self employment tax on this payment. I do not owe SE tax on this payment. How do I report the payment as income without Turbo Tax computing self employment tax?

[DawnC · Accepted solution]

Delete the 1099-MISC and any Schedule C that was created first.   Then re-enter it, making sure to answer the follow-up questions as follows:

Re-enter the 1099-MISC

Do any of these uncommon situations apply?  None of the above

Did it involve work like your main job?  NO

How often did you get it?  I got it in 2023 ONLY

Did it involve an intent to earn money?  NO

The income will go to Other Income instead of Self-employment.