Oregon Child Care Workforce Recognition Payment Program - Turbo Tax trying to make it a "business" income.

[crlaynestaxes]

My wife received 2 payments related to her job as a teacher in a Head Start program for pre-school age children. The first and largest was $500 for "Oregon Child Care Workforce Recognition Payment Program". The second was $300 through the same payment system in recognition of something else but the details are fuzzier on that one. Something to do with advancing her "level" at the school she works at. She received a single 1099-MISC for $800 from the payer of both these amounts. When I enter the information into Turbo Tax, it is trying to turn it into some kind of personal business income. Which it isn't... Is there a better way to handle this income? Does it make any difference? I.e. should I just let Turbo Tax create a business that doesn't exist for the purpose of reporting the income?

[MindyB · Accepted solution]

No, don't let TurboTax create a business. I suggest you delete the 1099-MISC(s) you have entered, and anything that was created in the self-employment section and start fresh.

Here is how to report the 1099-MISC (do this separately for each):

• Navigate to Federal > Wages & Income > Other Common Income> Form 1099-MISC> Start or Revisit
• Enter the 1099-MISC as printed, Continue
• Describe the reason for this 1099-MISC: "Oregon Childcare Program Payment" or similar- it may limit the characters, shorten as needed
• Select None of these uncommon situations apply, then continue
• Select No, it didn’t involve work that's like your main job and continue
• The next screen asks how often you get income from Oregon Childcare Program Payment.  Select only the year of this specific 1099-MISC, 2024.